DT’s IT services subsidiary will make the redundancies between now and he end of 2020
Deutsche Telekom is set to make 5,600 people redundant, from its loss making IT services division, T-Systems.
According to a report by Reuters, the job cuts fall below the forecasted level of 6,000 net redundancies. T-Systems currently employs around 17,000 people in Germany.
The company’s CEO, Adel Al- Saleh, has recently embarked on a two year rescue plan to return T-Systems to profitability by the end of 2020. With the job cuts freeing up around $695m, Al-Saleh is set to plough more funds into opportunities in the cloud based services sector, in an attempt to reignite the company’s fortunes.
T-Systems has announced that initially 3,765 jobs will go before the end of 2020. The company will also dramatically reduce the number of offices it operates in Germany to just 25.
The company will also reduce its overseas workforce, pledging from now on to only recruit international talent in the low cost markets of Hungary, Slovakia and India. Eventually, the company plans to grow its Indian workforce from its current level of 400 to more than 3,000 employees.
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