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Deutsche Telekom, works council agree T-Systems restructuring

FRANKFURT (Reuters) – Deutsche Telekom <DTEGn.DE> has reached an agreement with its works council on restructuring its troubled T-Systems IT services division, a company spokesman said on Friday.

The spokesman confirmed an earlier report in Handelsblatt that said the agreement included moving large parts of the business to a newly created German subsidiary and affected more than 2,000 staff.

T-Systems chief Adel Al-Saleh, hired at the start of 2018 to stem losses, has reduced T-Systems’ headcount in Germany, closed most local offices and hired 3,000 offshore staff to round out its software skills.

(Reporting by Hans Seidenstuecker; Writing by Tom Sims; Editing by Tassilo Hummel and David Clarke)

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