Dutch telecommunications operator KPN, which owned 21 per cent of Eircom, said today it is to present unions with a plan to cut 4,800 jobs.
The KPN board announced "that it is going to hold talks with the trades unions on the preparation of a social plan for the involuntary redundancy of approximately 4,800 employees".
Shares in KPN, which employs 38,000 people, surged by more than 10 per cent on the news.
The Dutch telecoms operator said it would "enlist external job finders to assist employees who are made redundant".
KPN is burdened with a euro 22.8 billion debt, in part owing to the purchase of German mobile operator E-Plus and high prices paid for next-generation mobile telephone licenses.
Two merger attempts, with the Belgian operator Belgacom and Telefonica of Spain, fell through.
In October 2000, the company announced 8,000 posts would be eliminated in 2001-2002 as part of a cost-cutting plan tied to financing of its Universal Mobile Telecommunication System licences.
AFP