PLDT to save P7 B from manpower cuts

By Louella Desiderio

MANILA, Philippines – PLDT Inc. expects to generate over P7 billion in savings from a decision to implement a manpower reduction program affecting employees involved in  information technology (IT) work.

 “We estimate over P7 billion over a number of years,” PLDT chairman and chief executive officer Manuel V. Pangilinan told reporters.

Earlier, Pangilinan said PLDT is implementing a manpower reduction program which could affect employees involved in IT functions. There are 1,000 employees performing work related to IT in PLDT.

PLDT is in talks with technology giant IBM for the outsourcing of some of the telco’s IT services.
 “We aim to sign the relevant agreements with them (IBM) by the end of June,” Pangilinan said.

The manpower reduction program is part of measures being undertaken by the company to cut costs as it looks to make 2017 a better year in terms of financial results.

Apart from the manpower reduction program, Pangilinan said PLDT is also implementing other measures by cutting expenses related to travel, seminars, symposia and by imposing a freeze on salary increases.

“We’ve had a freeze on salary increase for the past year or two. Everybody is pitching in terms of helping out in the opex (operating expenses) reduction,” he said.

PLDT has set a recurring core income target of P21.5 billion for this year, to serve as the new base to raise profitability in the coming years.

PLDT’s recurring core income reached P5.3 billion in the first quarter, down 26 percent from P7.2 billion in the same period last year, but on track with the core income guidance for the year.

“At the start of 2017, we put a new leadership team in place. This new team has brought new ideas, ways of working, fresh perspectives and a variety of skill sets and experiences. We’ll continue to develop our people, to ensure that we’re constantly poised to deliver on innovative growth,” Pangilinan said.

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