Deutsche Telekom to cut 15,500 more jobs; 46,000 by 2005
9 October 2002 -- Deutsche Telekom may cut as many as 15,500 more jobs than previously announced over the next three years, including 3,500 at T-Systems, 1000 at T-Mobile, and 11,000 at its foreign units.
9 October 2002 -- The former German state phone monopoly Deutsche Telekom AG says it may cut as many as 15,500 more jobs than previously announced over the next three years as it steps up efforts to cut its huge debt burden, including 3,500 at its T-Systems telecoms engineering unit, 1000 at its T-Mobile cell-phone business, and 11,000 at its foreign units.
Just days ago Deutsche Telekom increased the number of staff cuts expected at its main German T-Com fixed network division by 2005 from 7200 to 29,500.
A spokesman said that total job cuts of around 46,000 by the end of 2005 was a "realistic" prospect, with 35,000 (about 20% of its workforce) likely to go in Germany and 11,000 abroad. Deutsche Telekom employed 257,000 at the end of 2001.
Despite a pre-tax profit in first-half 2002 of EUR1.6bn at T-Com, Deutsche Telecom lost a record EUR3.9bn. Earnings have been hit by a costly push into mobile phones that undermined its share price and prompted its CEO to resign under pressure from shareholders, including the German government. Deutsche Telecom has pledged to sell non-core assets to reduce its EUR64bn debt.