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Deutsche Telekom to slash 10,000 jobs worldwide at subsidiary

Deutsche Telekom said on Thursday it would slash 10,000 jobs worldwide at its loss-making IT services subsidiary in the next three years as it seeks €600 million in savings.

Published: 22 June 2018 09:04 CEST

Deutsche Telekom to slash 10,000 jobs worldwide at subsidiary

A T-Systems office in Magdeburg, Saxony-Anhalt. Photo: DPA

Six thousand of the axed posts at the subsidiary T-Systems will be in Germany, a spokesman told AFP, adding that the restructuring plan had been announced to employees on Thursday.

The struggling subsidiary now employs 37,000 people, including 18,000 in Germany.

T-Systems also plan to shutter 90 percent of its 230 branches, leaving just 20 open, said business daily Handelsblatt which first reported the restructuring plan.

Service sector union verdi vowed to fight the “irresponsible job cuts” which it said were announced after fruitless talks with management had broken down last week.

It charged that “instead of tackling and future-proofing” the business,

Telekom had opted for “an unimaginative austerity programme and a clear-cut with massive job destruction”.

The union's IT sector official Michael Jaekel said the telecoms behemoth was planning to shift many of the jobs to lower-wage countries such as India.

He vowed that the union would “strongly fight back”.

Parent company Deutsche Telekom in May reported falling revenues for the first quarter, down 3.9 percent to €17.9 billion as currency headwinds from the strong euro clouded the growth picture.

Net profit at the group increased 32.8 percent year-on-year between January and March, to €992 million.

SEE ALSO: Briton faces court over Telekom cyber attack that hit 1 million German homes

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Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions.

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds.

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local.

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with.

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