Deutsche Telekom to take on the telecoms-ops and slimmed down T-Systems

FILE PHOTO: Adel Al-Saleh, a member of the board of management of Deutsche Telekom AG and CEO of T-Systems in Germany, the telecommunications giant, Deutsche Telekom is pictured before the company’s annual general meeting held in Bonn, Germany, May 17, 2018. REUTERS/Wolfgang rattay/File Photo

BONN, Germany (Reuters) – Deutsche Telekom is to take on the responsibility of business to business telecoms customers, the restructuring of T-Systems, which will emerge as a leaner company focused on digital services.

Adel Al-Saleh, was hired at the start of 2018, to run a loss-making company T-Systems, told staff on Wednesday that the company would be in the future is an integrated end-to-end IT player, and a reliable factor for our customers, “digitization”.

American Al-Saleh, who gave himself two years to get the job done, and has already taken steps to reduce the T-Systems’ German workforce of 6,000, the majority of the local offices and the hiring of the 3,000 offshore personnel to use the software and the skills.

The restructuring of Europe’s biggest telecoms group, will depart the company T-Systems with top-line sales to 4 billion euros ($4.4 billion), ” Al-Saleh told the staff in a meeting at the town hall. That’s down from more than 7 billion euros in the previous year.

About 30,000 employees will serve 1,000 customers.

Many European telecom companies have found themselves saddled with IT, in operations, not in a position to compete with the more dynamic, pure-play rivals. T-Systems has struggled with the loss of the IT outsourcing contracts are affected by past management.

Al-Saleh, according to notes of his remarks, he said that he would now have to negotiate with the social partners about the changes, the implementation of which is scheduled for completion in the second quarter of 2020.

Not have an effect on of the Deutsche Telekom group for the financial supervision and is expected. Al-Saleh, has said that he expects T-Systems to boost core profits this year, but it will only be used to generate a contribution of cash by the end of 2021 or early 2022.

($1 = 0.9052 euro)

Reporting by Douglas Busvine; Editing by Michelle Martin and Mark Potter

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