Dutch IT services provider Getronics is firing up to 2,500 staff to counter effects of the market slowdown in its homeland, but refused to be drawn on potential cuts to the UK workforce. Telco parent KPN has reported a drop in second calendar quarter results showing a near 2 per cent drop in sales to €3.29bn as EBITDA fell more …
I'm sure that their troubles have absolutely nothing to do with..
...the quality of service they offer....
Oh.. wait a minute. What's the opposite of that again?
Only €462m profit? Fire everybody, bollocks to social responsibility!
You are free to open up a shop that shows more "social responsibility" (whatever that is; it is not what is generally promoted as being such).
Note that those 462m go into investments or consumption by shareholders, so it's not as they would disappear altogether. In a healthy economy not foobared beyond all recognition by busybodies, politicians, progressives and Keynesians, that money would go into a bank and depress interest rates, making investment in additional projects possible. Of course, interest rates are low already because it's very acceptable to the electorate to be seen to be "ease the pain" while obfuscating the fact that the actual result is a decay in purchasing power and creation of bubbles, but hey, whatever rocks the vote.
To summarise ...
... the 462m wouldn't disappear into a bank account except it would disappear into a bank account except it wouldn't disappear into a bank account.
Economics is somewhat less truthy than religion.
€462m is revenue, not profit nor cash flow
EUR462m was what they were paid by customers during 2Q11. After paying salaries and other costs Earnings Before Interest Tax Depreciation and Amortisation was EUR15mn. This is not enough to cover the costs of maintaining its 15,100 servers and the 1.7m desktops and 0.5m phones it looks after. I imagine the business is losing quite a lot of money with its current cost base.
I'm not surprised there was no comment from the UK - the spokesman has probably already been made redundant!
I thought they'd already made everyone in UK redundant when they opened their Indian call centre in Bangalore.
There's still a small group of us clinging on by our fingernails.
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