Original URL: http://www.theregister.co.uk/2005/11/02/dt_jobs/

32,000 face axe at Deutsche Telekom

Job cuts are 'unavoidable'

By Tim Richardson

Posted in Financial News, 2nd November 2005 15:25 GMT

Deutsche Telekom (DT) is to zap 32,000 jobs in Germany over the next three years as it looks to cut costs and restructure its business. The telecoms giant insisted today that there would be no compulsory job cuts as part of the overhaul, which is set to cost the company €3.3bn in charges.

In short, DT is facing up to the changes that have swept the telecoms industry over recent years.

Or as chief exec Kai-Uwe Ricke put it: "The worldwide realignment of the industry, the rapid pace of technological development and, in particular, the tough competitive environment in the fixed network and broadband sector in Germany imposed by the regulatory situation, intensify the challenges facing the entire Deutsche Telekom Group

"On the one hand, we have to cut jobs in old core markets; on the other, there are opportunities to create jobs in new innovative markets."

Over the next three years, about 32,000 employees in Germany will leave Deutsche Telekom including 7,000 workers who are to be outsourced to customer service outfit Vivento.

In an email to workers seen by The Register execs say they are "aware of the seriousness and the extent of this decision".

"The measures which have been decided are unavoidable, however, in order to ensure the viability and market competitiveness of the entire Group," it said.

"There is no alternative: We must constantly scrutinise the performance and the achievement potential of each unit and make necessary adjustments.

"This is the only way to assert our position in the market. It will allow us to face our competition from a position of strength and meet the demands of our customers," it said. ®