Orange is launching a voluntary departure program in France, affecting 6,000 to 8,000 employees from its 65,000-strong workforce. This initiative, based on a senior part-time scheme, will be introduced for negotiation with unions, targeting employees with 15 years of service planning retirement between 2026 and 2033. Concerns arise over potential job outsourcing and mental health impacts on employees, amidst calls for improved management practices and social dialogue, as employee suicides have reportedly increased.
Orange’s New Voluntary Departure Plan: Key Details
In a shift from earlier statements, Orange is moving forward with a substantial voluntary departure initiative in France, potentially impacting between 6,000 and 8,000 employees from a total workforce of 65,000. This development, reported by Le Monde and corroborated by France Info, indicates that the telecom giant will reintroduce its senior part-time scheme (TPS). The last TPS, finalized in 2022, resulted in the exit of approximately 7,600 employees.
Set to be presented to trade unions on November 7 and available for negotiation through January, this revamped TPS will span from 2025 to 2028. It is aimed at employees who have accrued fifteen years of service and are planning to retire between 2026 and 2033.
Implications of the New Program
Employees may opt into the scheme up to five years prior to their retirement. In the initial year, they would work at a 50% capacity while receiving 70% of their salary. For the subsequent four years, employees would not be required to work and would receive 60% of their salary, alongside a guaranteed minimum wage. It’s important to highlight that the recent agreement between unions and employers regarding senior employment allows for gradual retirement beginning at age 60.
The workforce at Orange has seen a significant reduction, shrinking by a third over the past decade. Vincent Lecerf, HR Director at Orange, emphasizes the need for workforce adjustments due to rapid technological advancements and evolving digital trends that are transforming the telecom industry. Other major European telecom operators, including Telefónica, Vodafone, BT, and Deutsche Telekom, have initiated similar departure plans recently.
With an average employee age of 49, Orange’s current workforce in France includes 11,000 civil servants. Initially crafted by former CEO Stéphane Richard in response to a crisis in 2008-2009, the TPS has evolved into a strategy for managing payroll reductions. The forthcoming plan could also include commitments to hiring, as the previous initiative anticipated 8,000 new positions.
Sébastien Crozier, president of the CFE-CGC union at Orange, describes the new TPS as a significant social strategy aimed at encouraging older employees to exit the company. He expresses concern that this initiative is not a reaction to financial struggles but rather a method to shift and outsource jobs, citing the example of 640 job cuts at Orange Business intended to relocate roles to Mauritius.
Crozier stresses the importance of vigilance to ensure that this TPS does not morph into “a tool of social violence.” Many employees may feel mentally and psychologically drained by ongoing pressures to leave, which raises serious concerns about their well-being.
Furthermore, Crozier has called for the resignation of the current management, criticizing their lack of telecom expertise and failure to engage in meaningful social dialogue. He highlights a troubling pattern, recalling the management team of former CEO Didier Lombard, who oversaw the tragic incidents of 2008 and 2009. The distressing reality is that Orange is currently witnessing a troubling increase in employee suicides, with several reported cases in the past year alone.