(Telecompaper) Telecom Italia has informed trade unions that it plans to lay off 1,700 workers. The announcement followed a meeting with the ministry of economic development on the operator's employment policy. The job cuts will affect customer services, directory assistance and business support, and to a lesser extent the Open Access and IT departments, the company said. It also announced the withdrawal of an earlier proposal to hire 4,000 young people over the next four years. The company had hoped to benefit from a state reform that allowed the gradual replacement of older workers with young employees, but the so-called "expansive solidarity" legislation has not yet taken effect. As a result, the company said it is not able to maintain current employment levels and must reduce labour costs.