Deutsche Telekom, works council agree T-Systems restructuring

FILE PHOTO: Brochures with the logo of Deutsche Telekom AG are pictured at the shop in the headquarters of German telecommunications giant in Bonn, Germany, February 19, 2019. REUTERS/Wolfgang Rattay

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