DT considering domestic job cuts

12 Sep 2008

According to the Wall Street Journal, Deutsche Telekom (DT) is considering forced layoffs as it seeks to slash labour costs in order to survive rising competition and falling prices domestically. Around a third of DT’s 236,000 employees are in Germany (including fixed line, broadband, mobile and other units), but the country accounts for less than half of the group’s overall revenues (fully consolidating results from cellular division T-Mobile International). It is unclear how many jobs could go if DT pushes ahead with the controversial plan, but some analysts claim that as many as half of employees based at its domestic fixed line/broadband unit could go without having an overly negative effect on operations. According to TeleGeography’s GlobalComms database the German fixed division had 76,990 staff at the end of 2007, down from 88,580 at end-2005.

Germany, Deutsche Telekom (DT)