Hong Kong Telecommunications Ltd made 6.5% of its workforce redundant yesterday. The redundancies affect 1,100 staff in Finance, Property Management, Personnel and Marketing and have come as a result of Telecom integrating these departments from its Hong Kong Telephone and Hong Kong Telecom International subsidiaries into Hong Kong Telecom. Chief Executive of Telecom Michael Gale says that in the affected areas there was a duplication of effort. An improved telephone network was also cited as a reason for needing fewer staff. The redundancies will cost the equivalent of $16m for the financial year ending March 31 and a payment of $64m will also be made from an independently funded retirement scheme. In addition to the main redundancies a fairly small number of staff are also to be cut from Telecom’s subsidiary, Hong Kong Telecom CSL.
