KPN slashes jobs, issues profit warning

Dutch telecoms company KPN plans to lay off up to a quarter of its workers in the Netherlands and has cut its profit forecast for this year.

It blamed weak domestic revenues in the face of intense competition.

As consumers increasingly turn to social networking sites and instant messaging rather than traditional mobile phone services its revenues from texts fell dramatically in the Netherlands in the first quarter

Incoming chief executive Eelco Blok already had a reputation as a cost-cutter and the market was waiting for him to announce a new strategy for a telecoms firm that some consider to be a merger candidate.

“We face negative trends in the Netherlands,” said Blok in a statement, though he added that KPN was still experiencing strong underlying growth in Germany and Belgium.

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