Telecom Italia is axing 170 management roles, as it looks to cut costs and ensure a "generational change" in executive staff.

The staff will leave the company by the end of December 2018. It is unknown which departments the bulk of the cuts will hit.

In a statement, Telecom Italia said the cuts would largely focus on those who will be qualified for pension income by 2018.

It added that it would pay an incentive to staff willing to take early retirement. It would also contribute up to €50,000 if the specific manager wanted to study for a degree, or up to €20,000 if the executive wished to start a new business or go freelance.

The statement said: "The redundancy plan became necessary to enable costs to be reduced while at the same time ensuring generational change, as part of a process the company has started to profoundly re-organise and simplify its structures.

"In this context, the change in the quality and quantity of managers assumes a crucial role, and constitutes the foundation for future initiatives to enhance and develop internal management resources."

In April, the operator's new CEO offered staff a performance related bonus as it looked to turn around its financial performance. It is looking for improvements in Ebitda, opex reduction and its net financial position.

It is banking on LTE and fibre broadband to boost recent poor financials. However, in May it warned worse was to come during its 2016/17 financial year.

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