Correction and Clarification: In our story this morning we reported that the majority of Digicel employees to be sent home would come from Jamaica. However the company has noted that persons would have to apply for voluntary separation so there is no notion yet of where the majority will come from.

Arthur Hall, Senior Staff Reporter

Regional telecommunications giant Digicel is to cut its workforce across the region by more than 450, with Jamaica accounting for the majority of persons to be sent home.

However, Digicel says it will allow persons to opt for voluntary separation rather than management deciding who should go home.

The move comes as companies locally and internationally move to implement measures to remain viable amid the global economic crunch.

A proactive move

Digicel officials sought to make it clear yesterday that the staff reduction was a proactive move to prevent any fallout because of the current global economic meltdown.

"In the current challenging economic environment, all companies, including financially strong and fully funded companies, such as Digicel, need to ensure that they have a lean and efficient structure to strengthen their financial position and protect plans for continued growth," Colm Delves, chief executive officer of the Digicel Group, said.

Payment plan

According to Delves, Digicel expects approximately 10 per cent of its 4,500 workforce to take up the voluntary separation, which will carry an attractive payment plan.

"This will allow employees who may be considering a career change to leave the company voluntarily while receiving additional financial support and benefits," Digicel said.

"Full-time and part-time employees will be eligible to receive enhanced packages based on years of service, as well as extended health cover, pro rata bonuses and accelerated payments for stock options," the company said.

The company is also providing career transition assistance for the employees who participate in the scheme.

Digicel started operations in Jamaica in 2001.

"Digicel has experienced phenomenal growth since its initial launch and continues to evolve as a leading international mobile provider. We are now at a natural stage in our evolution to reassess our organisational structure, processes and to fully capture operational efficiencies," Delves added.

Employees have been given two weeks to apply for the voluntary separation and the company says at the end of that period, it will evaluate the applications and decide who will be allowed to leave.

Company officials said they had not yet decided what would be their next step if fewer than the targeted 450 employees take up the offer.

The voluntary separation programme does not apply to new Digicel markets, such as the British Virgin Islands, Honduras and Panama.