FILE PHOTO: The logo of Israel’s biggest mobile phone operator Cellcom is seen on the Cellcom building in Netanya, north of Tel Aviv January 28, 2014. REUTERS/Baz Ratner
(Reuters) – Cellcom Israel Ltd. said on Monday it would cut jobs and pay suppliers, as part of a restructuring plan aimed at returning to profit by the end of 2020.
Israel’s largest mobile operator, said that the steps would be to strengthen the company as it faces persistent competition and low prices in the Israeli telecommunications market.
The company has not specified how many jobs it would cut, but said that it was at this point, you would not be able to include the sales and service as well as customer-oriented staff.
Israel’s mobile phone industry was shaken up in 2012 with the introduction of a number of new operators, sparking a price war that led to steep drops in subscribers, revenue and profit for the Cellcom and rivals ner Communications and Pelephone, a unit of Bezeq.
Last month, the company reported a steeper-than-expected quarterly loss, weighed down by a jump in funding costs and fierce competition.
The company is committed to the reduction of the capital of 450 million to 500 million shekels ($142.35 million) a year, ” he said. The implementation of the plan, which could result in a significant one-time charges, Cellcom said.
The company’s U.S.-listed shares fell 2.8 percent to $2.05.
Report by Manas Mishra in Bengaluru; Editing by Arun Koyyur