Deutsche Telekom Stike
Workers at Deutsche Telekom are on strike in early 2007, in contract negotiations with Deutsche Telekom senior management. Deutsche Telekom AG is a major telco based in Germany, and one of the most powerful telecommunications businesses... [more]
Workers at Deutsche Telekom are on strike in early 2007, in contract negotiations with Deutsche Telekom senior management. Deutsche Telekom AG is a major telco based in Germany, and one of the most powerful telecommunications businesses in the world.
Deutsche Telekom to cut 2,000 more jobs
Deutsche Telekom , fresh from resolving a standoff with unions that had threatened the company's first major strike in a decade, could cut more jobs than the 32,000 already planned, a company spokeswoman said.
In response to a newspaper article that said the company planned to cut an extra 2,000 jobs, mainly at Deutsche Telekom's headquarters in Bonn, the spokeswoman said on Wednesday management was constantly seeking additional opportunities to cut costs. But she declined to comment on any specific number.
The Berliner Zeitung had cited company sources as the basis for its report on Wednesday that Europe's biggest telecoms group by sales planned to cut the extra 2,000 jobs by 2009.
Deutsche Telekom aims to cut up to 4.7 billion euros ($6.4 billion) in costs by 2010, including 2 billion this year, as it struggles with increased competition and a decline in its fixed-line business.
The Deutsche Telekom spokeswoman said about 20,000 of the 32,000 redundancies planned by the end of 2008 had already been achieved. Of the 32,000, 1,500 had been planned for the company's headquarters in Bonn.
"Changes in terms of efficiency have already been made since 2006, and we see the need for more such changes," she said.
Deutsche Telekom shares edged up 0.2 percent to 13.22 euros by 0802 GMT, outperforming a 0.8 percent weaker German blue-chip DAX index <.GDAXI>.
Deutsche Telekom said last week it was on track to achieve its 2007 financial targets but would not let up on efforts to cut costs.
"We are on the right track with our activities to become more competitive and keep our costs under control. However, we should not let this hide the fact that our journey is far from over," Chief Executive Rene Obermann said last week.
Lothar Schroeder, an executive of trade union Verdi and deputy chairman of Deutsche
Telekom's supervisory board, said the union had not been notified of any plans to cut more jobs.
"We knew that Deutsche Telekom was reviewing shared services, but this figure of 2,000, if it's true, is shocking, especially after the big conflict we just had with management," he told Reuters. "It brings renewed uncertainty into the company."
Deutsche Telekom and Verdi reached a deal in June allowing the company to move 50,000 staff into new, lower-paying service units in exchange for job guarantees, preventing a month-long selective strike from escalating.
Deutsche Telekom employs about a quarter of a million people worldwide, 180,000 of those in Germany.
In response to a newspaper article that said the company planned to cut an extra 2,000 jobs, mainly at Deutsche Telekom's headquarters in Bonn, the spokeswoman said on Wednesday management was constantly seeking additional opportunities to cut costs. But she declined to comment on any specific number.
The Berliner Zeitung had cited company sources as the basis for its report on Wednesday that Europe's biggest telecoms group by sales planned to cut the extra 2,000 jobs by 2009.
Deutsche Telekom aims to cut up to 4.7 billion euros ($6.4 billion) in costs by 2010, including 2 billion this year, as it struggles with increased competition and a decline in its fixed-line business.
The Deutsche Telekom spokeswoman said about 20,000 of the 32,000 redundancies planned by the end of 2008 had already been achieved. Of the 32,000, 1,500 had been planned for the company's headquarters in Bonn.
"Changes in terms of efficiency have already been made since 2006, and we see the need for more such changes," she said.
Deutsche Telekom shares edged up 0.2 percent to 13.22 euros by 0802 GMT, outperforming a 0.8 percent weaker German blue-chip DAX index <.GDAXI>.
Deutsche Telekom said last week it was on track to achieve its 2007 financial targets but would not let up on efforts to cut costs.
"We are on the right track with our activities to become more competitive and keep our costs under control. However, we should not let this hide the fact that our journey is far from over," Chief Executive Rene Obermann said last week.
Lothar Schroeder, an executive of trade union Verdi and deputy chairman of Deutsche
Telekom's supervisory board, said the union had not been notified of any plans to cut more jobs.
"We knew that Deutsche Telekom was reviewing shared services, but this figure of 2,000, if it's true, is shocking, especially after the big conflict we just had with management," he told Reuters. "It brings renewed uncertainty into the company."
Deutsche Telekom and Verdi reached a deal in June allowing the company to move 50,000 staff into new, lower-paying service units in exchange for job guarantees, preventing a month-long selective strike from escalating.
Deutsche Telekom employs about a quarter of a million people worldwide, 180,000 of those in Germany.
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