Bouygues Telecom said it is looking to cut its workforce as revenues and profits fell in the first half of the year.

The France-based mobile operator reported a seven percent year-on-year drop in first-half 2012 sales to €2.7 billion, while net profit that it contributed to the Bouygues Group as a whole fell 57 percent to €83 million over the same period.

The company said deep-seated changes in the mobile market had significantly dented its financial performance.

Chief amongst these changes was the launch of Free Mobile in January.

After a net loss of 379,000 mobile customers in Q1, the mobile market “settled down after a turbulent start to the year” and the company only lost a further 71,000 in Q2.

As a result, the company said a €300-million “adjustment and savings plan” aimed at reducing marketing and operating costs is in progress.

Further, a voluntary redundancy plan affecting 556 employees was proposed in early July, it added.

Revenues for the full year are expected to be around €550 million less than 2011.

There was better news for its fixed broadband business, which saw 70,000 net additions in Q2 and stood at 1.4 million in total at the end of June.

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