Deutsche Telekom to cut 4,900 jobs from troubled IT unit

March 18, 2014

German telecom giant Deutsche Telekom will cut 4,900 jobs over the next two years from its IT and consultancy unit T-Systems, the company said on Tuesday.

"We will cut 2,700 jobs this year and 2,200 next year in Germany," a spokesman told AFP, confirming a report by daily Frankfurter Allegemeine Zeitung.

T-Systems has struggled for years to turn a profit, competing with IBM, EDS and other IT giants to provide companies with their computer network systems.

The subsidiary says it currently employs about 50,000 people, but the spokesman said the were only planned in home-market Germany for now.

"We are now looking at our reach in the rest of the world and we have yet to conclude on a way forward," the spokesman added.

T-Systems generated revenue of around 9.5 billion euros ($13 billion) in the 2013 financial year.

Explore further: Dutch telecom KPN to cut 1,500 jobs

Related Stories

Dutch telecom KPN to cut 1,500 jobs

February 4, 2014

Royal KPN NV, the Dutch telecom company partly owned by Mexican billionaire Carlos Slim, says it will cut at least 1,500 jobs—5 percent of staff—by 2016 as its fourth quarter sales fell and losses worsened.

Germany's T-Mobile to cut 900 US jobs

May 16, 2012

Germany's T-Mobile, the fourth-largest wireless telecommunications company in the United States, said Tuesday it would cut 900 jobs as part of a company-wide restructuring.

Deutsche Telekom eyes further growth in 2014, 2015

March 6, 2014

German telecommunications giant Deutsche Telekom said Thursday it met its 2013 targets and is counting on business in the United States to boost overall sales this year and next year.

Deutsche Telekom profit up, sees rebound in US

August 8, 2013

Telephone company Deutsche Telekom AG said net profit increased 10 percent in the second quarter to 530 million euros ($704 million) and said its U.S. business was adding "droves" of new customers as its operations there ...

Recommended for you

'Droneboarding' takes off in Latvia

January 22, 2017

Skirted on all sides by snow-clad pine forests, Latvia's remote Lake Ninieris would be the perfect picture of winter tranquility—were it not for the huge drone buzzing like a swarm of angry bees as it zooms above the solid ...

Singapore 2G switchoff highlights digital divide

January 22, 2017

When Singapore pulls the plug on its 2G mobile phone network this year, thousands of people could be stuck without a signal—digital have-nots left behind by the relentless march of technology.

Making AI systems that see the world as humans do

January 19, 2017

A Northwestern University team developed a new computational model that performs at human levels on a standard intelligence test. This work is an important step toward making artificial intelligence systems that see and understand ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.