The Channel logo


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



Chris Mellor

Tech Unplugged sees Reg presenter unplugged
Nimble Storage array


Lego gandalf by  CC 2.0 attribution sharealike
Why interconnectivity in the cloud is tougher than just stacking bricks
Handing over dollars picture via Shutterstock
Steve Ballmer. Pic:  Aanjhan Ranganathan
Nokia is the biggest write-off yet, but it wasn't the first