Telenor-Ufone merger may trigger job cuts

ISLAMABAD: Pakis-tan’s biggest telecom merger of Telenor and Ufone, has entered a new and difficult phase, with the newly merged company ‘ e&’ expected to lay off hundreds of employees as part of a large-scale restructuring aimed at eliminating duplicate positions across multiple departments, sources told Business Recorder.

According to well-placed sources, the workforce rationalisation process has already begun and is expected to be completed over the next few weeks following the legal completion of the merger between Telenor Pakistan and Ufone.

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Sources said the downsizing is primarily driven by duplication of roles created after the integration of the two operators.

Departments including sales, marketing, finance, human resources, technology, customer services and administration are expected to witness significant restructuring.

Unlike previous telecom mergers, affected employees are unlikely to receive generous Voluntary Separation Scheme (VSS) packages. Sources said the compensation being considered is limited to a few months’ salary rather than the lucrative payouts offered during earlier industry consolidations, particularly after the Warid-Mobilink merger that created Jazz.

Before the merger, Telenor Pakistan employed around 800 people, while nearly 300 employees from Ufone have already been shifted to the company’s headquarters at 345. More transfers are expected as the integration progresses.

With the merged workforce substantially exceeding operational requirements, insiders estimate that the total employee strength could be reduced by nearly 300 to 500, bringing it closer to the staffing level of Jazz, Pakistan’s largest mobile operator, which currently employs around 1,100 people.

Sources said the restructuring has already started affecting employees. In one recent case, a senior sales official resigned after competing for a position in the merged organisation.

Employees have expressed growing uncertainty over job security as the integration accelerates. Many fear that the restructuring will continue over the coming weeks as the company seeks to cut costs, remove overlapping positions and improve operational efficiency following Pakistan’s largest telecom consolidation.

On contact to seek official version on the matter Saad Mustafa Waraich Director Cooperate Communications Merge co PTML responded as; “At this stage of a newly amalgamated organisation, our focus remains on integration, establishing operating structures, governance and policies. With that priority, we cannot comment on speculation related to internal plans.“

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