Deutsche Telekom to shut call centers

BONN, GERMANY: Deutsche Telekom AG said on Thursday that it plans to shut 53 call centers across Germany over the next two years in a move meant to help cut costs, but said all 8,000 employees affected would be offered jobs at the remaining centers.

Thomas Berlemann, a board member at Deutsche Telekom's T-Home division, said the company hopes to improve service quality and productivity by concentrating activities at 24 of its larger call centers.

It also hopes to cut costs by euro57 million ($84 million) per year.

Deutsche Telekom's call centers currently employ 18,000 people in total, and Berlemann stressed that none of those jobs would be cut.

The company plans to offer workers at the call centers slated for closure equivalent jobs elsewhere. It said it would offer temporary help with increased travel costs and would help cover any moving costs with one-time payments of euro7,670 ($11,300).

The ver.di service workers' union said it opposed the plan. Deutsche Telekom shares closed down nearly 2 per cent at euro10.75 ($115.85) in Frankfurt.