Swisscom Takes CHF50 Million Charge For 100 Job Cuts In 2013

Swisscom AG (SCMN.VX) said it will take a CHF50 million charge against its fourth quarter earnings in connection with 100 job losses next year.

MAIN FACTS:

- The company said it will cut 400 jobs next year - 100 managerial and 300 other positions from its workforces of 16,415 people.

- At the same time, Swisscom said it will create 300 jobs in growth areas.

- The changes were being introduced to react to changes in the telecoms market, Swisscom said.

- "Where 10 years ago voice telephony was the single largest source of revenues, its contribution has declined strongly ever since. Simultaneously, Swisscom has built numerous new businesses with which the company generates a multibillion revenue stream, thereby nearly compensating for the erosion of the classical telephony business," Swisscom said.

- In August Swisscom said it expects lower net revenue of CHF11.3 billion for the full year of 2012, due to the continued strength of the Swiss franc versus the Euro, but kept other financial guidance unchanged, including a forecast of earnings before interest, tax, depreciation and amortization of CHF4.4 billion.

- Swisscom reports it 3Q results on Nov. 8.

-Zurich Bureau, Dow Jones Newswires, [phone]; [e-mail]

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