The Channel logo

News

By | Paul Kunert 14th March 2012 14:01

Layoffs at Deutsche Telekom's T-Systems over... for now

'Majority' of leavers took voluntary redundancy package

T-Systems claims to have concluded its voluntary redundancy (VR) programme and has initiated some compulsory lay-offs under a cost-cutting programme.

The IT arm of Deutsche Telekom providing desktop services, system integration and computing and network services kicked off the process a month ago. It employs 40,000 bods worldwide and 1,100 in the UK.

"We consulted with our teams on the implementation of changes in processes and tools in order to gain greater efficiency through standardisation and automation," the firm said in a statement sent to The Register.

"We have been able to agree the vast majority of change to roles through a voluntary redundancy programme, however in a small minority of areas the impact of those changes will involve a limited number of compulsory redundancies."

According to company insiders, the "vast majority" of the circa 80 workers leaving the firm took VR but a handful of compulsory redundancies came from the Services Management Centre in Hatfield.

Sources previously claimed T Systems wants to save £3m as part of this restructure which also includes slashing the numbers of contractors it uses.

The company spokeswoman refused to comment on savings or the numbers of staff involved.

"[Outsourcing] is a very tough and competitive market so we have got to be constantly more than matching what everyone else is providing. We have to stay competitive to win new business," said a spokeswoman. ®

alert Send corrections

Opinion

Love

Chris Mellor

Tandberg and Sphere3D deals offer hope after 18 bad ones
Fraud image
Openstack log

Features

No, silly... he was the fall guy for years of Finnish folly
Fraud image
Frodo and the Ring
Microsoft's strategy is to make Store apps popular. Good luck with that