Deutsche Telekom (DT) plans to eliminate 1,200 jobs in its home country of Germany, aiming to save approximately 100 million euros annually, as reported on Thursday by the German business daily Handelsblatt.
The planned reductions are part of a restructuring program, expected to be implemented by June 30, primarily affecting departments such as marketing, taxation, and administration, according to the Düsseldorf newspaper.
Without citing a source for the information, Handelsblatt reports that the company will need to direct more resources towards broadband internet infrastructure, mobile internet services, and IP-based telecommunications networks. Therefore, it plans to hire more workers in the relevant departments.
DT was not available for comment.
In early December 2012, the German telecommunications giant announced a 30 billion euro investment over the next three years to modernize fixed and mobile networks, primarily in its home country of Germany and in the USA. This year alone, investments are planned to amount to 9.8 billion euros.
In January, DT also issued bonds worth two billion euros with maturities of eight and 15 years to maintain liquidity, estimating that due to planned investments, its available cash this year will drop to around five billion euros, down from the projected six billion in 2012.
