COLUMBIA, Md., Feb. 21, 2001 (PRIMEZONE) -- Despite their recently-announced layoffs, telecom companies will continue to suffer a severe shortage of employees trained on new data technologies, according to Kate Christensen, President of KC-EP, a Columbia, Md. performance improvement firm.
For the most part, those being laid off are employees whose skills were not updated or became redundant after a merger, said Christensen. "Ironically, the layoffs have nothing to do with the skills shortage, which will persist. So telecoms must continue to hire and train new people," observed Christensen, whose firm, a unit of Provant, Inc. (Nasdaq:POVT) trains employees of telecom and other transaction-based companies.
Layoffs are occurring, Christensen believes, because of ongoing M&A activity in the industry as well as intense competitive pressure in most telecom sectors. "With long distance rates falling to the lowest levels ever it's hard for companies to make money on the transport services which were once their bread and butter," said Christensen. "And the new telecoms, Competitive Local Exchange Carriers and Application Service Providers, are undergoing consolidation, or even disappearing. Nevertheless, all of them have a critical need for skills in the areas of advanced voice/data services and Internet services. In fact, the future of telecom depends on these new technologies and integration services."
"The telecom companies that now plan to cut 25 to 30 percent of their workforce are doing it either because of a merger, where they need to redistribute work, or because of declining revenues that require cost-cutting," said Christensen. "They'll face challenges serving their customers, hence they must redouble efforts to retain employees with valuable skills...despite layoffs among other workers."
Christensen warned that telecoms will need to be strategic in order to keep the best people in order to cope with fluctuations and uncertainty. "They'll also have to be able to train new people quickly and cost-effectively. This means stepped-up investment in e-learning, knowledge management and improved business processes and tools."
While the present environment may be harsh, many telecom workers will ultimately benefit if they take responsibility for their professional growth and skills, said Christensen. "Laid-off telecom workers won't find it difficult to find jobs in other industries. Operators and customer service workers can get employment in call centers, but may not enjoy the same pay or benefits. Managers can become consultants and contract workers within the industry."
Founded in 1990 and based in Columbia, Md., KC-EP is a leading performance improvement consulting firm serving telecommunications and other transaction-based companies from coast-to-coast. The firm's clients include organizations such as Verizon, Worldcom, Concert, Fannie Mae and Pfizer. KC-EP is a unit of Boston-based Provant, Inc. the country's largest organizational performance improvement company. More information on KC-EP may be found at www.kc-ep.com.
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CONTACT: KC-EP, Columbia
Kate Christensen, President
(410) 953-6170
Phil Ryan
(212) 206-0033