Deutsche Telekom to Continue Restructuring in 2008, Says CEO

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Deutsche Telekom to Continue Restructuring in 2008, Says CEO

12:51 am on December 18, 2007 | Category: Business, Telecom Services, Corporate

Germany’s incumbent telecommunications operator, Deutsche Telekom, will continue restructuring its operations next year, specifically aiming to cut its administration costs, according to Chief Executive, Rene Obermann.

“The restructuring is not over,” Obermann said in an interview with German daily, Sueddeutsche Zeitung. “We have many small sites spread all over the country. That’s not cost-effective,” he explained.

Obermann did not provide many details about next year’s cost-cutting plans, but admitted that conflicts with unions were likely. The company’s current downsizing program is expected to result in 32,000 layoffs by the end of next year.