Deutsche Telekom to create IT joint venture affecting 16,000 jobs

Deutsche Telekom to create IT joint venture affecting 16,000 jobs
AFP
Comment E-mail Print Share
First Published: Mon, Aug 27 2007. 03 21 PM IST
Updated: Mon, Aug 27 2007. 03 21 PM IST
Berlin: German telecom giant Deutsche Telekom plans to find a low-cost partner for its troubled IT unit in a move that will affect 16,000 computer programming jobs, newsweekly Focus reported on 27 August.
Focus said the group planned to transfer 16,000 jobs from its Systems Integration business, a unit of its T-Systems IT division, to a new joint venture.
It is currently seeking a partner that is “as stable and internationally active as possible.”
Deutsche Telekom’s works council is to be informed of the plans this week and its supervisory board is expected to give its approval Thursday, Focus said.
The Systems Integration unit offers IT services to major corporations such as Daimler Chrysler and EADS.
T-Systems employs 55,000 people and is at a competitive disadvantage to competitors that have outsourced staff to low-wage markets such as India or countries in eastern Europe.
Deutsche Telekom chairman Rene Obermann, who took the job in October 2006, plans major restructuring at the company which has suffered a mass exodus of customers, particularly in its fixed line business.
The company employs 249,000 people worldwide including 89,000 outside Germany.
Comment E-mail Print Share
First Published: Mon, Aug 27 2007. 03 21 PM IST