Status: 11/18/2021 2:09 p.m.
The corporate customer division has long been the problem subsidiary of Telekom. Even renovations and downsizing have not changed anything. The group is now considering selling T-Systems.
Deutsche Telekom is preparing to sell its loss-making subsidiary T-Systems. This is reported by several media with reference to insiders. According to “Manager Magazin”, talks are already underway with potential buyers. A contract is expected in September next year. The sensitive business for the public sector could be separated beforehand.
A T-Systems spokesman said: “We have plans for growth. But we are also examining other options.” The corporate customer division has long been the problem child of Telekom. T-Systems has been under construction since 2018, even with the loss of thousands of jobs. The lengthy realignment is making progress, but the division is still not showing any growth. T-Systems, with around 29,000 employees, posted a pre-tax loss of 650 million euros on sales of 4.2 billion euros in 2020.
Several options under consideration
Under the leadership of US manager Adel Al-Saleh, T-Systems has been radically downsized over the past three years. The telecommunications business within the major customer subsidiary was transferred to Telekom Deutschland. Growth sectors such as cybersecurity or the Internet of Things were transferred to independent GmbHs. Today, T-Systems only accounts for three percent of the Group’s total revenue. 8,000 jobs were cut.
Management is now working on several options for the remaining business. If a whole sale is not possible, a division and a sale in individual parts are played through. According to reports in the “Handelsblatt”, Telekom is also examining a spin-off from T-Systems in addition to the sale. According to the plans, the group would continue to hold a stake in the company, but significantly reduce its influence, according to the paper. In Berlin, plans have already been discussed with the major shareholder, the federal government, according to which Telekom would hold a third of the shares in the new structure, the federal government also one third and one or more investors should be found for the remaining third.