DGAP-News: Telefónica Deutschland Holding AG: Telefónica Deutschland announces key parameters for planned downsizing

DGAP-News: Telefónica Deutschland Holding AG / Key word(s): Miscellaneous Telefónica Deutschland Holding AG: Telefónica Deutschland announces key parameters for planned downsizing 17.10.2014 / 13:00
October 17, 2014 Telefónica Deutschland announces key parameters for planned downsizing - Creating the leading digital telecommunications provider - Planned reduction of 1,600 full-time positions until 2018 - Measures are subject to approval by the Supervisory Board - Management and Workers Council agree to cooperate in a spirit of trust Munich. Following the completion of the take-over of the E-Plus Group, the Management Board of Telefónica Deutschland is announcing key parameters for the forthcoming integration. The goal is to use the merger as a springboard for the digital transformation of the business model. In addition, the planned measures shall contribute to achieving the announced synergies of more than five billion euros. In this context, 1,600 of the current approximately 9,100 full-time positions are to be cut by 2018. This is mainly to abolish duplicate functions. In this process, Telefónica Deutschland intends to implement a severance pay scheme for employees leaving the company. The company strives to avoid compulsory redundancies wherever possible. The Supervisory Board and the Workers Council have been informed about the planned measures, which are subject to approval by the Supervisory Board. The company will now continue negotiations with the Workers Council. The two sides agreed to conduct these negotiations in a spirit of partnership. The merger with E-Plus offers Telefónica Deutschland the unique opportunity to be an active player in shaping change in the telecommunications industry. Digitalization presents enormous opportunities, but also poses huge challenges for the entire industry. Customers are rapidly moving from voice-based telephones to mobile data services. At the same time, massive infrastructure investments lie ahead to enable the industry to meet the demands for increasing data use and customers' growing mobile data requirements. Consequently, the new Telefónica Deutschland is committed to consequent simplification and digitalization in order to create lean and efficient structures in all areas. Due to the growing digitalization the company plans further partnerships in sales and customer service in the future. The agreement with the telecommunications provider Drillisch is one such example. The job reductions will not differentiate between the old Telefónica Deutschland and the former E-Plus Group. As already announced, the Düsseldorf site will continue to have an important role in the company besides the registered head office in Munich. Hamburg will continue to be the major location among others for the fixed-line business of Telefónica Deutschland. More Information: Telefónica Deutschland Investor Relations Georg-Brauchle-Ring 23-25 D-80992 München t +49 (0)89 2442-1010 f +49 (0)89 2442-2000 e ir-deutschland@telefonica.com
17.10.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de
Language: English Company: Telefónica Deutschland Holding AG Georg-Brauchle-Ring 23-25 80992 München Germany Phone: +49 (0)89 24 42 0 Internet: www.telefonica.de ISIN: DE000A1J5RX9 WKN: A1J5RX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart TecDAX End of News DGAP News-Service
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