EMCC European Monitoring Centre on Change



Geographic Location

Country: Germany


Sector: Information / communication
61 - Telecommunications
Group: Deutsche Telekom AG

Employment Effects

Announcement Date: 19-03-2008
Planned Job Reductions min: 12000
Planned Job Reductions max: 12000
Type of Restructuring: Internal restructuring
Employment Effect Start: 19-03-2008
Foreseen End Date: 31-12-2010

Additional Information

T-Systems, a subsidiary of Deutsche Telekom, has announced that it is to cut 12,000 jobs by the end of 2010. Approximately 3,000 to 4,000 jobs will be cut each year throughout Germany. T-Systems stated that redundancies will be managed in a socially responsible way. The job cuts are part of a cost cutting programme to improve T-Systems economic competitiveness. The recent partnership deal signed with the American firm Cognizant, will give T-Systems access to Cognizant's offshore workforce in low-cost countries, allowing it to cut costs.