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Telekom reportedly mulling massive job cuts

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Telekom reportedly mulling massive job cuts
Photo: DPA
10:19 CEST+02:00
German communications giant Deutsche Telekom will cut up to 1,600 jobs in its Bonn headquarters as part of an aggressive cost-cutting measure targetting senior management, media reported Monday.

Many of the cuts will be made at the senior management level, business daily the Handelsblatt reported Monday.

The cuts are part of a larger austerity programme that will run until 2015 and is aimed at cutting expenses at its headquarters, which has been accused of being overloaded with high-paid management.

A spokesman confirmed to Handelsblatt that cost-saving measures were coming, but would not elaborate on what was planned.

With aggressive cost-cutting between 2007 and 2010, the company says it has already saved about €8 billion – though mostly from synergies rather than job losses.

Initially, the savings at its Bonn headquarters will likely be wiped out by massive severance packages, which could average between €200,000 and €250,000 per person, totalling up to €400 million in the short-term. But the move will eventually save the company hundreds of millions of euros.

Deutsche Telekom has been hit by a series of crises in recent months, including accusations of corruption and technical problems with a toll road scheme that may end up costing it up to €1 billion.

More recently, there have been threats of strikes by company employees.

The Local/mdm

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