France Telecom: Corporate Restructuring and Employee Wellbeing

March 08, 2022

The France Telecom case series follows the evolution of the organization from a national telephone monopoly to a private company facing severe challenges. These included a lessening competitive advantage, with the advent of mobile carriers and competition from other countries, as well as a workforce that was much larger than needed and included many civil servants, making it difficult to reduce headcount.

As increasing pressure mounted internally to make changes and 22,000 jobs were lost between 2006 and 2009, the culture at France Telecom shifted from one where employees were proud to work to one where the physical and mental wellbeing of some employees became increasingly fragile. Did corporate leaders push employees too far, creating unacceptable levels of stress and unhappiness?

Harvard Business School professors Cynthia Montgomery and Ashley Whillans discuss some fundamental tensions between the pressures and benefits of capitalism, the responsibilities of management, and the day-to-day and long-term impacts on employee well-being in the case series, “France Telecom: A Difficult Restructuring.

This episode discusses suicide. If you or someone you know is having thoughts of suicide, please use the resources below to seek help.

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