T-Com to lose another 10,000 jobs in 2006/07?

23 Dec 2004

Deutsche Telekom (DT) is understood to be looking to cut a further 100,000 jobs from its fixed line unit T-Com in 2006/07 as part of its ongoing drive to reduce wage costs within the group. Although the planned cuts have yet to be formally agreed, the move is in line with DT’s stated policy of lowering its wage bill, which currently stands at over EUR3.3 billion per quarter for its 250,000 employees, and forms part of chief executive Kai-Uwe Ricke’s strategy to bolster the group’s profitability. DT has been cutting back on staffing levels for several years and in March this year struck a deal with the unions to cut wages in Germany – affecting around 120,000 employees – in return for a commitment to minimise job cuts in 2004/05 and make no compulsory redundancies before 2008. However, the group’s fixed line unit T-Com, which is still considered over-staffed in spite of job cuts, and which is facing falling sales due to fixed-to-mobile substitution and increased competition, remains firmly under the CEO’s spotlight.

Germany, Deutsche Telekom (DT)