Deutsche Telekom’s Kriselnde it major customer division, T-Systems, wants to delete around 10,000 jobs, which is about one in every fourth place. A spokesman for company confirmed a report of Handelsblatt.
6,000 of posts are refore to be dismantled in Germany. Of currently 230 branches in Federal Republic, 20 will probably still be retained. The Ver. Di trade union criticized plans as a “bald blow” and announced resistance.
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T-Systems chief Adel al-Saleh told Handelsblatt that dismantling program would be expensive, “also because we want to make it as socially compatible as possible, but this investment will be worthwhile”.
T-Systems recently had around 37,000 employees, 18,000 of which in Germany. Al-Saleh wants to save around 600 million euros in costs up to 2021, reports newspaper. On capital market in May, he had spoken of more than 300 million euros. “The freed up funds should not only be used to make T-systems profitable again,” newspaper quoted manager: “Investments in growth areas such as Internet of things should also be significantly increased.”
Al-Saleh had taken office at top of T-systems at beginning of year. “The cost structures at T-systems are a challenge,” he had already said in a Reuters interview. In past, T-Systems had set strong on classic IT outsourcing business. But many companies are only doing small jobs here, margins are falling, many are using cloud.
