Ukrtelecom staff cut by 5.8% in Q1, 2011

Kyiv, April 19 (Interfax-Ukraine) - The number of employees at Ukrtelecom as of April 1, 2011 was 71,350 people, which is 4,380 persons, or 5.8% down on the start of the year, according to data announced at a press conference at Interfax-Ukraine on Tuesday by Ukrtelecom's new owner, Austrian company EPIC.

According to the data, in 2010 the number of employees at Ukrtelecom fell by 6,600 persons, or by 8%, and a year before by 21,950, or by 21.1%.

During the period since the end of 2006 the number of employees of the national telecom operator has shrunk by 51,750 persons, or by 42%.

At the same time, according to EPIC, the share of expenses on personnel of Ukrtelecom's total expenses is 45%, while in Western Europe the figure does not exceed 25%.

The State Property Fund announced a tender for the privatization of 92.79% of the stocks in Ukrtelecom in October 2010, setting the starting price at UAH 10.5 billion. Only one bid was received, from EPIC's Ukrainian subsidiary - ESU LLC. Due to this, an additional assessment of the stake to be sold was announced.

The Kyiv-based Ostrov consulting firm, which assessed Ukrtelecom's stockholding, evaluated the stake at UAH 10.575 billion.