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SWISSCOM

Swisscom restructuring cuts 400 jobs

Switzerland’s dominant telecoms operator Swisscom says it will cut 400 jobs next year while creating 300 new positions in "growth areas."

Swisscom restructuring cuts 400 jobs
Photo:Swisscom

In a statement issued on Wednesday, the company said the restructuring was necessary owing to the "fundamental changes" in the telecommunications market, with new business models compensating for the rapid erosion of its original telephony business.

"Next year, Swisscom will create around 300 jobs in growth areas, while at the same time reducing around 100 managerial and 300 jobs which are governed by collective labour agreement," said the company, which at the end of September counted 16,415 employees.

A company spokeswoman said the job cuts would mainly affect support services, while client services would be strengthened.

Swisscom said a social plan would be made available to help the affected employees.

The company said the restructuring cost would amount to around 50 million francs ($53.6 million), which would be booked during its fourth quarter.

During the first half of the year, Swisscom saw its net profit slip 3.5 percent to 928 million francs on sales down 1.8 percent year-on-year at 5.62 billion francs.

The company's third-quarter earnings are set to be released on November 8.

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TRANSPORT

‘We’re running late on this’: Deutsche Bahn promises better Wifi on German trains by 2026

German rail operator Deutsche Bahn has vowed to address what is widely considered to be one of the weakest areas of the country's telecommunications network: internet on trains.

'We're running late on this': Deutsche Bahn promises better Wifi on German trains by 2026
A Wifi hotspot sign is displayed on the side of a German train in Hamburg. Photo: picture alliance / dpa | Rainer Jensen

Deutsche Bahn chairman Dr. Richard Lutz made the promise in a press conference on Wednesday, where he announced a new partnership with German telecommunications operator Deutsche Telekom to improve the Wifi on trains by 2026.

“Trains are not just a means of transport to our customers – they are an office, conference room, and place to relax all at the same time,” he said. 

“To do all that, our passengers rightly demand that there be gap-free coverage with the mobile communications network. We are now laying the foundations needed to achieve this.”

He appeared together with the CEO of German telecommunications operator Deutsche Telekom, Tim Höttges, and the Minister for Transport, Andreas Scheuer (CSU), in the Bahn’s headquarters, high above Berlin’s central train station.

Deutsche Bahn’s rail network covers a total of 33,400 kilometers, 7,800 kilometers of which are major routes which are used by all ICE trains as well as main IC trains.

READ ALSO: Delayed train? Germany’s Deutsche Bahn to give online refunds for first time

Deutsche Telekom wants to supply these major routes with fast broadband by the end of 2024. 

By 2025, the company aims to supply another 13,800 kilometers of heavily-travelled routes – used by more than 2,000 passengers daily – with consistently fast Wifi.

The rest of the train operator’s routes should then be competed by 2026.

A “radical improvement”?

The patchy signal along Germany’s railway networks has long been considered one of the weakest areas of the country’s telecommunications network.

In 2015, the government insisted that the networks take action to improve the poor Wifi network on trains by 2019 – but the operators continue to drag their feet.

According to a report by the Federal Network Agency, there are around 550 fewer antennas near railway tracks than are needed to provide consistent service.

In his opening conference remarks, Höttges expressed his discomfort at returning to the age-old topic: “We’re running late on this, I’m fully aware of that,” he told journalists. 

Also attending the press conference, Minister for Transport Andreas Scheuer welcomed the new partnership.

READ ALSO: This new European high-speed rail network will take you from Vienna to Berlin in four hours

“The time of ‘I have no network’ must come to an end,” he said. “Mobile surfing and telephony must be possible everywhere and at all times.” 

Though the proposed changes are set to take another five years to be completed, Deutsche Bahn and Telekom described the plans as a “radical improvement” on the current situation.

Vocabulary

Wifi access – WLAN-Zugang

Railway lines – (die) Bahnstrecken or (die) Bahnstrecke 

Connection – (der) Anschluss

Dead zone – (das) Funkloch

We’re aiming to help our readers improve their German by translating vocabulary from some of our news stories. Did you find this article useful? Let us know.

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