Telecoms company Go is planning to reduce its workforce by 350 "in the short term", CEO David Kay told employees yesterday in a letter urging them to take up the voluntary retirement scheme that ends in May.

Ideally, Mr Kay said, the target is reached through the voluntary retirement schemes but if that failed "the decrease in headcount will be met via other measures...

"... the board of directors has established that the target headcount should be in the region of 1,000 employees in the short term and management is to seek to achieve this," Mr Kay said in the letter.

"Our current employment levels in the fixed line business, particularly networks/technical, administration, finance and human resources, are unsustainable.

"By rightsizing our organisation we can continue competing more effectively and providing our customers with the best level of services at the lowest rates - this will ensure our long-term viability."

The former state-owned company, which was privatised after Dubai-based firm Tecom Investments bought the government's 60 per cent stake in 2006, was precluded from shedding any jobs for three years as part of the sale agreement.

But that period expires this year, together with the last voluntary redundancy scheme currently on offer.

Up till recently, the company had refused to set targets but yesterday's letter spells them out ahead of the May deadline.

As he had done in the past, Mr Kay reminded employees that the voluntary scheme was the last one.

"I would like to take the opportunity to reiterate the board's directive that there will be no other voluntary retirement scheme after the current scheme ends".

The scheme offers up to €60,000 per employee.

The company has been particularly hit by the changing landscape in the telecoms sector. Three years ago, it had a mono-poly on fixed-line telephony. That has now ended and it has to compete with five telecoms companies in different services.