Telefónica Deutschland To Cut 1,600 Full-Time Jobs By 2018

(RTTNews) - German telecommunications provider Telefónica Deutschland, a part of Spanish telecom group Telefónica S.A. (TEF, TDE.L), Friday said it plans to reduce 1,600 full-time positions by 2018, following completion of the takeover of the E-Plus Group.

The company said the job reductions will not differentiate between the old Telefónica Deutschland and the former E-Plus Group, and is mainly to abolish duplicate functions.

On October 1, Telefonica Deutschland completed the acquisition of Dutch Telecom operator Royal KPN NV's (KPN, KKPNY.PK, KKPNF.PK) German mobile telecom business the E-Plus Group.

It was on July 23, 2013, that Telefónica Deutschland agreed to acquire E-Plus from KPN. The deal was to see KPN receiving 3.7 billion euros in cash and an initial stake of 24.9 percent in Telefónica Deutschland.

The firm noted that the downsizing is from its current strength of about 9,100 full-time positions. The planned measures are subject to approval by the supervisory board. The company said it will now continue negotiations with the Workers Council.

Following the completion of the take-over of the E-Plus Group, the management board of Telefónica Deutschland aims to use the merger as a springboard for the digital transformation of the business model.

The company said its planned measures shall contribute to achieving the announced synergies of more than five billion euros.

Telefónica Deutschland intends to implement a severance pay scheme for employees leaving the company. The company said it will strive to avoid compulsory redundancies wherever possible.

Telefónica Deutschland's move is aimed at simplification and digitalization in order to create lean and efficient structures in all areas. Telefónica S.A. is Telefónica Deutschland's indirect majority shareholder.

On Frankfurt's Xetra, Telefónica Deutschland shares are currently trading at 3.59 euros, up 0.48 percent.