Feeds

Deutsche Telekom CEO resigns

Fierce competition

Build a business case: developing custom apps

Kai-Uwe Ricke resigned as CEO of Deutsche Telekom yesterday. The head of the company's wireless telephony division T-Mobile, 43-year old Rene Obermann, will replace him.

Ricke's resignation wasn't a big surprise. On Thursday, the company reported a 20 per cent decline in 3Q profits. Wireless earnings were down and fixed-line consumers continue to switch to mobile or internet based telephony.

Last week Ricke promised the company would reduce its costs by €2bn next year and reach annual savings by €5bn by 2010. The company will also cut over 32,000 jobs, or nearly one fifth of its German workforce. Telekom said it expected to spend €3.3bn on severance compensation.

However, the board believed that wasn't enough given the fierce competition Deutsche Telekom faces on its home turf. Cut-rate operators have moved into Germany and many Germans now use the internet to make cheap phone calls.

Deutsche Telekom was formed in 1996 as the former state-owned monopoly Deutsche Bundespost was privatised. Ricke took over as CEO four years ago. He initially whittled down the company's debt by almost a quarter, beating his own target and putting the company on a stable course. Clearly, that wasn't enough.®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.