Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
According to the trade union Ver.di, the planned savings programme by German mobile phone operator T-Mobile would mean the loss of around 2,200 jobs in Europe, nearly 1,700 of them in Germany. 1,600 of these jobs would be lost as a result of T-Mobile's plans to outsource parts of its call centre and other activities.
In March 2005, T-Mobile announced it is now planning to cut 900 jobs over the next two years. The company currently employs around 8,200 staff in Germany, and had announced previously that it was planning to cut up to 1,200 jobs in Germany. T-Mobile is aiming to reduce its costs by €1 billion by 2006 through extensive restructuring measures. As part of the latest plans, over 300 jobs are to be transferred to other subsidiaries of Deutsche Telekom.
On 15 March 2005, CEO Kai-Uwe Ricke gave further details on the restructuring involving 5% of its German staff and announced that Deutsche Telekom's fixed-line unit, T-Com, would also be affected by the job cuts. Deutsche Telekom's restructuring plans for T-Com and T-Mobile reflect the telco's focus on cost efficiency and its efforts to improve its balance sheet, reduce debt and curb the fall in revenues from traditional fixed-line voice services.
The company has cut more than 100,000 jobs in the last decade, whereby T-Com has been the most affected unit.
Eurofound (2005), T-Mobile, Internal restructuring in Germany, factsheet number 61181, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/61181.