Feeds

T-Mobile axes 2,200 jobs

Saving for growth

  • alert
  • submit to reddit

Security for virtualized datacentres

T-Mobile is axing 2,200 jobs - one in ten of its European workforce in a massive cost-cutting exercise to save €1bn (£693m) a year.

Some 1,200 jobs will be axed in Germany alone as the company embarks on a new scheme called 'Save for Growth'.

Jobs will be lost in T-Mobile's other country operations including the UK, which employs 6,500 staff, although workers here won't be told details until tomorrow. US jobs are not included in the cuts.

T-Mobile International chief exec René Obermann said: "We will do everything we can to see that the whole process is carried out in as socially acceptable as possible."

In effect, T-Mobile is restructuring its business to reflect a shift away from customer acquisition towards better customer retention.

Said Obermann: "The mobile industry is on the verge of a shift from the focus being on growth purely in SIM cards to the development and maintenance of deeper customer relationships. The course is clear: profitable growth at reasonable costs instead of growth at any price; simple and inexpensive tariffs coupled with realistic handset prices."

So, the cellco is reducing handsets on offer from 50 to 30-40; this should simplify procurement and help it negotiate lower prices with suppliers.

T-Mobile is also looking to network efficiency gains and it aims to use more ecommerce and telesales to flog phones and tariffs. ®

Related stories

Hacker breaches T-Mobile systems, reads US Secret Service email
Stelios eyes Europe for easyMobile service
T-Mobile widens UK airport Wi-Fi cover
easyMobile set for March launch
Stelios to hop into bed with T-Mobile

Protecting against web application threats using SSL

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Turnbull: NBN won't turn your town into Silicon Valley
'People have been brainwashed to believe that their world will be changed forever if they get FTTP'
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.