Deutsche Telekom AG (DTE.XE) is planning to cut up to 6,000 jobs at its T-Systems unit, as the company streamlines its information-technology and large-customer operations to strengthen competitiveness, the daily Handelsblatt newspaper reports Monday.
T-Systems employs around 29,000 workers in Germany, and manages the IT operations of large customers, such as Royal Dutch Shell PLC (RDSA). Because competition in the sector is stiff and profits are thin, the unit aims to focus more on digital operations such as cloud services and platforms, the article says.
A Deutsche Telekom spokesman confirmed restructuring measures are planned at the unit to The Wall Street Journal, but declined to specify the number of jobs affected. He also said measures would be discussed both at Deutsche Telekom's supervisory board meeting on Dec. 12, as well as at a T-Systems supervisory board meeting in January.
Labor unions fear the company will carry out forced layoffs for the first time in its history, according to the article.
"If that's the case, we won't go along with it," the article quotes labor union ver.di board and Telekom supervisory board member Lothar Schroeder as saying.
Deutsche Telekom is also considering selling its Spanish operations and consolidating its French subsidiary, the report adds.
Write to the Frankfurt Bureau at email@example.com
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(END) Dow Jones Newswires
December 02, 2013 02:32 ET (07:32 GMT)Copyright (c) 2013 Dow Jones & Company, Inc.
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