Telekom job cuts to bring €1.7 billion in savings

Deutsche Telekom expects to save €1

Deutsche Telekom expects to save €1.7 billion per year from 2009 as a result of its 32,000 announced jobs cuts in Germany, according to the text of a presentation to analysts today.

The company also said it would keep looking for acquisition opportunities after it walked away from a potential bidding war with Spain's Telefonica for Britain's O2.

"We are well aware of the European challenge facing us - and not only since the Telefonica deal. That is why we will continue to look closely at all opportunities arising in the European markets where we are present," chief executive Kai-Uwe Ricke said in the text of a speech.

He added that of the €1.2 billion in extra investment Deutsche Telekom had announced for 2006, €0.7 billion was earmarked for its thriving mobile business while €0.4 billion would be spent on the declining fixed-line business.