Eircom will cut 200 jobs from its multimedia division and integrate its two Internet service providers (ISPs) as part of an ongoing restructuring of its multimedia divisions.
The company has also radically revised its plans to introduce digital subscriber line (DSL) technology and will delay roll-out until the second half of the year ended March 31st, 2002.
Instead of introducing a DSL product offering a full range of television and multimedia services, Eircom will now introduce a product based solely on offering a high-speed Internet service.
The decision to revise its DSL offering was taken for both financial and regulatory reasons, Eircom said. Last week, the firm pulled out of a #37 million State-backed project to offer DSL to the regions.
Eircom also confirmed yesterday that it was closing its digital publishing arm Rondomondo with the loss of 35 jobs. It is understood staff will be offered voluntary redundancy.
Eircom's remaining multimedia ventures, which include its two ISPs Indigo and Eircom.Net, will be merged with its fixed-line assets under one business unit to reduce costs.
The restructuring of Eircom's multimedia activities will result in the number of employees falling to 330 people from its present level of 530 in this sector.
These job cuts are in addition to the 250 which recently occurred at three failed technology firms linked to Eircom - Nua, Ebeon and Viasec.
Directors of Flexicom, another technology firm linked to Eircom, are currently in negotiations to buy back a 30 per cent stake owned by the telecoms firm to keep it afloat.
Mr Alfie Kane, chief executive at Eircom, said these closures were regrettable but Eircom was not willing to become a venture capitalist.
In addition to rationalisation at its multimedia operations, Eircom also announced a restructuring at its international operations.
The company will cut 80 staff at its UK operations, reducing employment to just 20. In Northern Ireland, the cuts will be less severe with staff numbers reduced to 140 from the current level of 180.
