The transformation of our Group was a key issue in past years and will continue to be so in coming years. It entails extensive staff restructuring, which we again accomplished in a socially responsible manner in 2018. As part of that, we continue to employ tools such as severance payments, dedicated retirement, and phased retirement. The principal developments are outlined below:
Vivento: service provider for staff restructuring
Our HR service provider Vivento continued to support us in socially responsible staff restructuring in 2018. It identifies new career perspectives outside and at the Group for our civil servants. In 2018, the focus was primarily on transfers of civil servants to the Federal Office for Migration and Refugees, the Federal Employment Agency, the Federal Armed Forces, and customs agencies. Employees were assisted in finding positions with federal, state and local administrative authorities. About 326 civil servants employed at Deutsche Telekom opted for a permanent transfer to federal, state or local authorities in 2018. Since Vivento was established 15 years ago, it has helped more than 51,374 employees (as at December 31, 2018) to gain a new career perspective.
Fundamental transformation of T-Systems
Deutsche Telekom’s Systems Solutions business is undergoing an extensive process of transformation. The goal is to position T-Systems as an attractive, flexible partner for digitalization. The foundation for the future reorganization in Germany was laid in 2018. From January 2019, T-Systems will have a new setup geared toward portfolio units, such as SAP, Internet of Things, Security or Digital Solutions, which work increasingly in flexible organizational structures. Cost cuts are intended to help fund investment in new growth areas, such as the cloud, the Internet of Things and security, as well as ensure competitive prices. The reorganization will enable us to make our administration and sales structures much leaner. Capacity requirements will be reduced by a total of some 5,600 jobs in Germany by the end of 2020, while new jobs will be added in growth areas. Apart from the corporate structure, our location structure in Germany will also be streamlined. The current 230 office locations in more than 100 cities will be merged at 25 cities in the future. Shared functions, such as Communication, Finance and HR, will be pooled at the central locations Hamburg, Berlin, Bonn, Darmstadt, Frankfurt am Main, Leinfelden and Munich.
We aim to shape the restructuring in a socially responsible way using tools such as phased retirement, early retirement, and severance payments. The T-Systems service provider Job Service & Placement (JSP), established in 2014, will provide employees with advice and support in the change process under an extensive program. Employees without a job in the new organization will transfer to JSP, where new employment will be found for them within the Deutsche Telekom Group and elsewhere. Compulsory redundancies are to be avoided wherever possible. Our employees will be supported by various initiatives during the change process – for example, with Outward Mindset workshops, which will help them reflect positively on the transformation in a wider context. We trained more than 2,500 employees in this approach in 2018.
Realignment of Telekom Deutschland GmbH
Deutsche Telekom’s business in Germany continues to change, with the goal of being even more competitive and service-oriented. The transformation project comprised three major changes:
In 2017, about 20,000 colleagues moved to the new units by way of transfer of operations, job offer process, transfer, assignment or temporary leave from civil-servant status. The reorganization and transfer of operations for employees from service and business customer sales were completed at the turn of 2017/2018.
Holistic staff restructuring and transfer management at Telekom Deutschland GmbH
As part of the digitalization of business fields, we still need to win over employees to the idea of a career change. To this end, holistic staff restructuring and transfer management was established in the Germany operating segment in 2017, with the aim of achieving a quick impact. This means that in cases where tasks will be eliminated or different skills are required for certain positions, we want to take preemptive steps and consult with the affected colleagues on the opportunities for a professional reorientation. We also integrate managers actively in the change process. Our consulting concept comprises the development of internal and external employment alternatives and working out a specific potential labor market for the employee in question. In addition, we provide assistance in the individual job application process and – where necessary – offer skills development measures.