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Hired at the start of 2018 to pull loss-making Deutsche Telekom IT subsidiary, T-Systems out of the red, Adel Al-Saleh from the US has succeeded, after several weeks of negotiations, in securing a compromise agreement with the central WC. Contrary to an announcement in June 2018, the company will not be eliminating 6,000 out of the 17,000 jobs in Germany but instead will start by shedding 3,765 jobs by the end of 2020. If the company isn’t doing any better then the end of 2020 it could do away with an extra 1,200 jobs. The agreement is partially linked to the fact that over recent months hundreds of employees have taken voluntary dismissal. According to a company spokesperson, layoffs will be commencing as soon as employees receive their notifications from the week starting September 17. Quoted in the Handelsblatt publication, T-Systems HR head, Georg Pepping stated, ” T-Systems wanted to avoid straightforward dismissals as much as possible. To this end T-Systems will have recourse to various instruments including part-time early retirement (Altersteilzeit), early retirement, and leave compensation.” Also quoted in the publication, President of the T-Systems central WC, Thomas Schneegans stated that workers, primarily from the administrative divisions initially, could apply for new jobs that will be created in the post transformation organization. Those who are not taken can be assigned to a Deutsche Telekom service company, where they will receive training. And he added, “There will be ‘no laundry chute’. Employees without a job will continue to be trained and paid until they have found a new job.” In addition, although the company will radically prune the number of offices in Germany from 100 to 25 this will occur more gradually than was initially intended. Annual costs savings of €600 million are being targeted by T-Systems as a result of the headcount reductions that should be completed by the start of 2019.
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