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.
Telefónica Deutschland Holding AG, listed at the Frankfurt Stock Exchange in the Prime Standard, and its wholly-owned, operationally active subsidiaries Telefónica Germany GmbH & Co. OHG and E-Plus Mobilfunk GmbH & Co. KG is part of the Spanish telecommunication group Telefónica S.A. headquartered in Madrid. The company offers its German private and business customers post-paid and prepaid mobile telecom products as well as innovative mobile data services based on the GPRS, UMTS and LTE technologies with its product brands O2 and BASE as well as several second and partner brands. In addition, the integrated communications provider also offers DSL fixed network telephony and high-speed Internet. With a significant presence in 24 countries and a customer base of more than 316 million accesses, Telefónica is one of the largest telecommunications companies around the world.