KPN to slash €250M from costs in latest round of cuts - Mobile World Live

KPN to slash €250M from costs in latest round of cuts

24 NOV 2020

Dutch operator KPN unveiled a three year strategy focused on expansion of its fibre network and pursuit of 5G opportunities in targeted industries, as it revealed further measures to reduce overheads.

In a statement ahead of an investor update event, the company outlined the need to prepare for the next wave of digitalisation in The Netherlands with measures to “further simplify and streamline” its operating model.

Among the areas identified are simplifying its portfolio, changes to IT and network systems, and accelerating a move to digital-led customer services through its app and mobile.

The operator also cited cost savings exposed by the ongoing pandemic including the move to remote working and associated opportunity to adjust the scale of its office footprint.

In the years 2021 to 2023, it aims to remove €250 million from annual overheads. The new strategy incorporates the remainder of a previously announced cost reduction programme, which originally aimed to cut €350 million of expenses but has since been extended to between €375 million and €400 million.

The savings will be used to partly fund an acceleration in its fibre rollout in The Netherlands, as it aims to meet demand for fast domestic broadband and support digitisation of sectors including healthcare and education.

Although largely focused on its fibre ambitions, the company’s three-year plan also cited its intent to focus 5G on providing differentiated services in the B2B sector for specific industries.

CEO Joost Farwerck (pictured) said: “The importance of connectivity has never been stronger than today. Working from home has become the norm. Therefore, the need for fast and reliable internet is greater than ever. The delivery of our strategy will ensure the Dutch society stays connected and will drive the digitalisation of services across sectors”.

Back

Author

Chris Donkin

Chris joined the Mobile World Live team in November 2016 having previously worked at a number of UK media outlets including Trinity Mirror, The Press Association and UK telecoms publication Mobile News. After spending 10 years in journalism, he moved...

Read more

Related

Tags