BERLIN-Citing changing industry dynamics, German telecommunications giant Deutsche Telekom AG said it plans to cut 32,000 jobs during the next three years-with most of the reductions coming from its T-Com operations-though it also expects to add jobs in other divisions. DT said the layoffs and other restructuring measures should cost the company nearly $4 billion.
DT noted that 20,000 jobs would be cut from its T-Com division as part of its Simplicity project; 5,500 jobs would be lost at its T-Systems operations; and 1,500 layoffs in DT’s centralized functions. DT also announced that 7,000 Vivento call center employees would be outsourced and no longer work for DT.
DT added that it plans to add 5,000 jobs for the rollout of its high-speed fiber-optic network-though that could be jeopardized pending regulation in new markets-and 3,000 new jobs created at its T-Punkt shops.
“The worldwide realignment of the industry, the rapid pace of technological development and, in particular, the tough competitive environment in the fixed network and broadband sector in Germany imposed by the regulatory situation, intensify the challenges facing the entire Deutsche Telekom Group,” explained Kai-Uwe Ricke, DT chief executive officer. “On the one hand, we have to cut jobs in old core markets; on the other, there are opportunities to create jobs in new innovative markets.”
DT also announced it did not plan on bidding for wireless operator 02 plc, which earlier this week received a $31.4 billion takeover proposal from Spanish telecom provider Telefonica. DT already offers wireless services through its T-Mobile operations in 02’s German and United Kingdom service areas.
