Sonera cuts 1,000 jobs as it looks for more savings

Sonera announced Thursday that it will cut 1,000 jobs -- about 10 percent of its workforce -- in an attempt to save up to 60 million euros (US$55 million).

The Finnish telecommunication company will make the cuts in its administration, services, fixed-line and mobile divisions and plans to take a one-time restructuring charge of 5 million euros against earnings this year, the company said in a statement.

The job cuts are expected to have only a "marginal effect" on Sonera financial results this year, with most of the cost saving from the staff reductions materializing in 2002, Sonera said. As of June 30, the company employed 11,000 people, the company said.

The company has been shedding operations and staff in an attempt to streamline costs and does not see any financial recovery in the near future, Sonera said.

In July, Sonera completely pulled out of the Dutch ISP (Internet service provider) market when it shut down Sonera Plaza Ltd., its Internet access business in the Netherlands, and sold Sonera Plaza Nederland BV to Italy's Tiscali SpA.

Last May, Sonera cut 70 jobs in its mobile Internet portal subsidiary Sonera Zed Ltd., with most of the staff reductions coming in its U.K. offices.

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