The Wall Street Journal has an interesting story on attempts by France Télécom to shed workers. Here's a couple of paragraphs:

Formerly a 100% state-owned phone monopoly, France Télécom is trying to convert itself into a pan-European Internet and mobile-phone company. But it must navigate a technology revolution with a work force that is almost impossible to reduce by layoffs. Two-thirds of France Télécom workers have civil-servant status that guarantees them a job for life, and the rest are protected by strict French labor laws.

To encourage voluntary departures, France Télécom has subsidized a magician, backed the opening of a scuba-diving shop in Martinique and sent a promising baritone to opera school. It also persuaded public-sector employers such as schools and fire departments to take thousands of its workers.

If the business ventures fail in the first three years, the budding entrepreneurs can return to the company. "You would not believe the number of pizzerias and other little businesses France Télécom gave birth to last year," says Olivier Barberot, senior vice president for human resources.