Telecom Portugal SA plans to shed about 5,000 staff over the next three years, mainly through early retirement and transfer of workers to other firms: it was formed in June by the merger of three state telecommunications firms; it said more efficiency could be achieved by streamlining the management structure; the privatisation of an initial stake of about 25% of Portugal Telecom is set for May 1995 and is expected to yield about $1,500m; two thirds of the shares will be sold to overseas investors; $500m of the proceeds will be used to reinforce Portugal Telecom’s pension fund, with the rest going to the government; shares will be sold on New York and London stock exchanges as well as in Lisbon
