Deutsche Telekom staff axe will keep swinging in 2007

17 Dec 2007

Rene Obermann, who took over as CEO of German incumbent Deutsche Telekom (DT) just over twelve months ago, plans to keep reducing the company’s workforce to save costs and improve competitiveness, German daily Sueddeutsche Zeitung reports. ‘Restructuring is not over,’ said Obermann, whose plans to move 50,000 staff into new lower-paying service units caused a stand-off with unions and a five-week strike by 15,000 workers earlier in the year. A settlement was eventually reached with union Ver.di whereby jobs were guaranteed until 2012 in exchange for a 6.5% pay cut and a four-hour extension to the working week. During 2006 the company implemented a programme to cut 32,000 jobs.’There will be more potential for conflict in 2008,’ Oberman said. ‘We need to save costs in administration, for example, and we have too many small sites spread across the country.’ Deutsche Telekom employs about a quarter of a million people worldwide, 180,000 of them in Germany, and is looking to make savings of EUR4.7 billion (USD6.83 billion) by 2010 as it struggles with increased competition, a decline in its fixed-line business and loss of customers.

Germany, Deutsche Telekom (DT)