PLDT Inc. on Tuesday announced a consolidated core profit of P27.9 billion last year, down by 21 percent due to higher spending to support expansion of its fixed and mobile network.

"We faced very tough tests in the past year as competition intensified and the shift to digital services accelerated. Our results reflect the impact of these challenges, but also point to us the way forward. We are focused on growing our data and digital services," Manuel V. Pangilinan, chairman of PLDT said.

Net income amounted to P20.16 billon last year, down by nine percent to from P22.07 billon in 2015.

Pangilinan said the company is not yet out of the woods, but its prospect is brighter.

He said PLDT will lay off some infotech personnel by second quarter but he said

manpower reduction is still "under discussion."

PLDT has over 1,000 IT personnel. He said PLDT is talking to IBM to outsource its IT needs.

"In the course of providing IT needs, they will need people to provide it. So, the suggestion is they (IBM) will take over some of the IT personnels (of PLDT). We want to make sure that they will keep their jobs," Pangilinan said.

Pangilinan expects significant savings from streamlining of manpower.

In 2015, PLDT reduced about 5 to 6 percent of its workforce. It had 17, 176 employees at end-2015.