Deutsche Telekom will reportedly assume responsibility for corporate telecoms clients from its affiliate T-Systems, as part of a restructuring programme aiming to cut down costs.
Reuters reported the move will see T-Systems operate as a slimmed-down operation, focused on IT and digital services.
A few thousand positions are expected to be transferred from T-Systems to Deutsche Telekom, a process planned Q2 2020, however discussions still need to be held with partners.
CEO of T-Systems, Adel Al Saleh, who was hired by the German operator in 2018 to stop losses at the unit, outlined to staff that the business would operate in the future as “an integrated end-to-end IT player and reliable enabler for our clients’ digitisation”.
In September 2018 the company laid off 5,600 people of its staff as part of a restructuring programme led by Al-Saleh in order to turn around T-Systems’ financial performance.
The IT services unit of Deutsche Telekom is reportedly close to halfway through its goal to achieve an estimated €600 million in cost savings as an outcome from the restructure.
Reuters also forecasted that the latest move will leave T-Systems with revenue of €4 billion ($4.4 billion), and around 30,000 employees serving 1,000 clients.