Deutsche Telekom division T-Systems said it would cut or relocate around 10,000 jobs worldwide as part of the strategy to save 600 million euros.
T-Systems, which aims to become a digital service provider, will relocate around 4,000 jobs. T-Systems will slash 6,000 jobs over the next three years.
T-Systems will simplify sales and delivery organizations. T-Systems will also review non-customer-related activities. T-Systems will reduce the management levels from eight to three levels.
T-Systems will have four large scale delivery centers worldwide — in Germany, Slovakia, Hungary and a newly formed center in India.
T-Systems aims to become a digital service provider with over 30,000 jobs worldwide from around 37,000 people worldwide including 17,800 in Germany.
T-Systems CEO Adel Al-Saleh said the company will make 300 million euro investments in growth areas will form the core of the transformation program for the next three years. These include: the Internet of Things (IoT), Cloud, SAP, security, digital solutions, toll collection and services for the public sector.
T-Systems will cut or relocate approximately 2,000 jobs in Germany over the three years — starting in the second half of 2018.
“In the first year, the main focus is on overhead functions and management positions. In the second year, the focus will be on distributing delivery across the four large delivery centers. In the third year, more automation and digitization will enable further staff reduction in impacted areas,” T-Systems said.
T-Systems has 230 office locations in 100 cities in Germany. “Less than eight employees work at 50 of the sites. It’s not efficient. We want to consolidate to less than 20 office locations. 90 percent of all employees work in 22 German locations today” explains Al-Saleh.