Deutsche Telekom says will slash 10,000 jobs at subsidiary

June 21, 2018
Deutsche Telekom in May reported falling revenues for the first quarter, down 3.9 percent to 17.9 billion euros

Deutsche Telekom said Thursday it would slash 10,000 jobs worldwide at its loss-making IT services subsidiary in the next three years as it seeks 600 million euros ($696 million) in savings.

Six thousand of the axed posts at the subsidiary T-Systems will be in Germany, a spokesman told AFP, adding that the restructuring plan had been announced to employees on Thursday.

The struggling subsidiary now employs 37,000 people, including 18,000 in Germany.

T-Systems also plan to shutter 90 percent of its 230 branches, leaving just 20 open, said business daily Handelsblatt which first reported the restructuring plan.

Service sector union verdi vowed to fight the "irresponsible job cuts" which it said were announced after fruitless talks with management had broken down last week.

It charged that "instead of tackling and future-proofing" the business, Telekom had opted for "an unimaginative austerity programme and a clear-cut with massive job destruction".

The union's IT sector official Michael Jaekel said the telecoms behemoth was planning to shift many of the to lower-wage countries such as India.

He vowed that the union would "strongly fight back".

Parent company Deutsche Telekom in May reported falling revenues for the first quarter, down 3.9 percent to 17.9 billion euros as currency headwinds from the strong clouded the growth picture.

Net profit at the group increased 32.8 percent year-on-year between January and March, to 992 million euros ($1.2 billion).

Explore further: Deutsche Telekom confident after Q1 profit bump

Related Stories

Deutsche Telekom confident after Q1 profit bump

May 9, 2018

Germany's Deutsche Telekom lifted its earnings forecast for 2018 on Wednesday as it presented first-quarter results, saying fast growth especially in US arm T-Mobile would juice its operating income.

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.

T-Mobile taking over Dutch arm of Tele2 mobile provider

December 15, 2017

The Dutch arm of T-Mobile says it is taking over telecom and internet provider Tele2's operations in the Netherlands, in a move T-Mobile says is aimed at competing with local heavyweights KPN and VodafoneZiggo.

Recommended for you

Observation of quantized heating in quantum matter

February 19, 2019

Shaking a physical system typically heats it up, in the sense that the system continuously absorbs energy. When considering a circular shaking pattern, the amount of energy that is absorbed can potentially depend on the orientation ...

Sound waves let quantum systems 'talk' to one another

February 18, 2019

Researchers at the University of Chicago and Argonne National Laboratory have invented an innovative way for different types of quantum technology to "talk" to each other using sound. The study, published Feb. 11 in Nature ...


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.