OSLO, Norway, Sept. 28, 2001 (PRIMEZONE) -- Telenor (Nasdaq:TELN) has, with immediate effect, decided to cut heavily, the use of consulting services and other hired personnel. Business is to be carried out through own employees and only strictly necessary consulting services may be engaged. The aim is to reduce the expense level related to consulting services and hired personnel within the whole of the Telenor Group by NOK 750 to one billion by the end of 2002.
"We terminate all consultancy agreements and will only re-negotiate agreements of critical importance to Telenor," said President and CEO Mr. Tormod Hermansen. He emphasizes that Telenor wishes to stimulate the internal labor market within the Group and that the aim is to solve tasks through use of own employees.
"Due to changed market conditions, especially within IT-related businesses, we have already reduced the number of employees. Employees without immediate tasks may therefore, to a large extent, replace consultants and hired personnel. Much may also be gained from better use of resources across organizational borders," the CEO said.
The reduced use of consulting services and hired personnel is part of a broader program for cost efficiency, decided by the Telenor management with immediate effect. Other efforts include freeze of staff recruitment and strong travel restrictions. Telenor's own solutions such as video- and teleconferencing are to be used to a higher extent. Telenor has already reduced travelling expenses considerably through agreements with major travel businesses and through the use of electronic booking systems.