Deutsche Telekom will slash about 19,000 jobs over the next three years

"The worldwide realignment of the industry, the rapid pace of technological development and, in particular, the tough competitive environment in the fixed network and broadband sector in Germany imposed by the regulatory situation, intensify the challenges facing the entire Deutsche Telekom Group," Chief Executive Kai-Uwe Ricke said in a news release. "On the one hand, we have to cut jobs in old core markets; on the other, there are opportunities to create jobs in new innovative markets," he added.

The former monopoly, still 38 percent owned by the German government and its agencies, said most of the job cuts - amounting to 11 percent of its domestic work force - would come at T-Com, which provides fixed-line telephone services and has lost business since European Union markets were opened to competition in 1998.

The Bonn-based company said the reductions would cost3.3 billion, or $4 billion, in the form of costly severance pay mandated under its union contracts.

Like other former telephone monopolies, Deutsche Telekom is struggling to adapt to a business environment that is changing radically through the introduction of new competitors and new technologies, including Internet telephony.

While the European telecommunications giants have moved aggressively into mobile and Internet services, losses in their fixed-line businesses have forced them to make sharp reductions in their payrolls. France Télécom, for instance, has cut more than 37,000 jobs, or 15 percent of its work force, since 2002, and now employs 206,000 people.Deutsche Telekom, the largest European phone company, said Wednesday it would cut 19,000 jobs from its German payroll over the next three years as it struggles to cope with what it called "massive changes" in the telecommunications sector.

The former monopoly, still 38 percent owned by the German government and its agencies, said most of the job cuts - amounting to 11 percent of its domestic work force - would come at T-Com, which provides fixed-line telephone services and has lost business since European Union markets were opened to competition in 1998.

The Bonn-based company said the reductions would cost3.3 billion, or $4 billion, in the form of costly severance pay mandated under its union contracts.

Like other former telephone monopolies, Deutsche Telekom is struggling to adapt to a business environment that is changing radically through the introduction of new competitors and new technologies, including Internet telephony.

While the European telecommunications giants have moved aggressively into mobile and Internet services, losses in their fixed-line businesses have forced them to make sharp reductions in their payrolls. France Télécom, for instance, has cut more than 37,000 jobs, or 15 percent of its work force, since 2002, and now employs 206,000 people.

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