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Telekom intensified austerity program for Europe
REUTERS
The future head of Deutsche Telekom, Tim Höttges, plans further cost and personnel-reduction programs. Job cuts are planned in the department of European leader Claudia Nemat.
Hamburg - In addition to recently become known plans, T-Systems cut jobs in the business customer segment, Höttges issued internally the objective to increase significantly in the future in the European Division efficiency. The experienced manager magazin online by several people familiar with the situation.
Höttges, who officially takes over as CEO earlier this year, but already its operations, and have also Europe-leader Claudia Nemat made the requirement to improve margins significantly, manager magazin learned online from the environment of the company. Already ongoing austerity measures such as cuts in marketing budgets, cooperation in purchasing or consolidations of functions within the department are now, therefore, be significantly tightened in 2014.
In addition, a stand "significant staff reductions" before, says the company. The topic of efficiency in European business was the subject of the last board meeting of Telekom, on 12 December took place.
Austerity measures in the national companies
A spokesman for Deutsche Telekom 
said that a comprehensive reduction program for the Europe Division was not planned. But in the individual country organizations it may well come at a cost-saving measures as "stop 2014, the pressure on operating results and margins" are. The met national companies of Telekom among others with "efficiency efforts - particularly with the reduction of indirect costs." The spokesman added: "At a cost savings may vary by country to administrative expenses and staff restructuring proceed as in the past the respective national society will provide information on concrete measures.".
said that a comprehensive reduction program for the Europe Division was not planned. But in the individual country organizations it may well come at a cost-saving measures as "stop 2014, the pressure on operating results and margins" are. The met national companies of Telekom among others with "efficiency efforts - particularly with the reduction of indirect costs." The spokesman added: "At a cost savings may vary by country to administrative expenses and staff restructuring proceed as in the past the respective national society will provide information on concrete measures.".This Höttges proposes to his office on a similar path as his predecessor René Obermann at its startup. The outgoing Telekom boss had promptly leave at the beginning of the CEO transition spin off 50,000 employees in service companies - and had set off to harsh confrontation with the unions.
Redundancies would be breaking a taboo
Such features in Bonn again from, since it was announced that Höttges around 6000 points in the business customer division T-Systems plans to cut and evidently also layoffs does not preclude - a taboo in Bonn.
The exact dimensions of the austerity measures at T-Systems T-Systems wants Höttges the Supervisory Board on 22 Inform of January. The division achieved in the last quarter, a margin of about 2.3 percent. Default is now, these heave to a level of about 6 percent, executives said.
Clean-up work will now be done in Europe resort. There currently are shrinking revenues and profitability. Thus, the earnings before interest, taxes, depreciation and amortization decreased (EBITDA) in the third quarter of 2013 by 10.6 percent compared to the previous year. The margin was 33.8 percent - a drop of 2.5 percentage points. For comparison, in Germany business this stood at 41.9 percent. Europe boss Nemat is intended to the internal margin targets have failed several times until the third quarter, according to Bonn. The top manager - as her portfolio - should thus be in the new year along with T-Systems under the special observation of the new CEOs Höttges.