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21 Jan 2005

Mobile communications operator T-Mobile aims to cut up to 2200 jobs over the next two years in Europe. More than half of these cuts are to be made in the German subsidiary company, T-Mobile announced.

By spinning off business activities, another 600 jobs are to be created within the Group. These measures are part of a streamlining campaign to make Deutsche Telekom"s mobile communications division more profitable.

By the end of 2006,1 billion euros are to be saved, and human resource costs are to be lowered in the process by 150 million euros. At the same time, 50 million euros are to be made available for "strategic growth initiatives".

The saving program also includes cuts in subsidies for cell phones. Along with other measures such as streamlining the palette of cell phones offered and rationalizing the services purchased from subcontractors, a process that T-Online calls "optimizing supplier relations", these measures are to make up 85 percent of the total savings. For instance, the portfolio of cell phones is to be reduced from more than 50 down to between 30 to 40 models; in the process, the focus is to be on products specifically for T-Mobile.

In addition to the savings program, T-Mobile wants to expand its services for mobile Internet and integrated network access for GPRS, UMTS, and WLAN. ."