Ok so for the business people out there who like to watch the stocks grow and fall, etc and like to wonder about businesses… Here’s something I saw that caught my eye in my email last night.
"BERLIN, Nov. 2 - Deutsche Telekom, the largest phone company in Europe, said Wednesday that it would cut 19,000 jobs from its German payroll over the next three years as it struggles to cope with what changes in the telecommunications sector.The former monopoly, still 38 percent owned by the German government and its agencies, said most of the job cuts, which amount to 11 percent of its domestic work force, would come at T-Com, which provides fixed-line telephone services and has lost business since European Union markets were opened to competition in 1998.
The company, based in Bonn, said the reductions would cost 3.3 billion euros ($4 billion), in the form of severance pay mandated under its union contracts.
Like other former telephone monopolies, Deutsche Telekom is struggling to adapt to a business environment that is changing radically through the introduction of new competitors and new technologies, including Internet telephone service. "
For those of you that don’t know who Deutsche Telekom is, they are directly related to T-Mobile, T-Mobile being DIRECTLY related to and the largest source of income for the german company overseas (last I heard, unless it changed)
The job cuts are for Deutsche telekom, not T-Mobile, but they are directly related, partnered… and when the income of the big daddy goes down because they make 19,000 payroll cuts… they’re going to have to fine a way to funnel money from everything they can find, all teh companies that bring them income in one way or another. Things as simple as changing tiny rates, making competetive deals, closeouts, etc, huge differences in everything overall. Even a dollar change in something like say a phone plan with the german company bumping it up a dollar with 1,000,000 customers means an extra $1,000,000 a month.
Here’s my prediction, anyone feel that this will reflect on the USA T-Mobile company? I USED to work for them, thank god I had no stocks in the german company, I’d be pissing blood right now.
Anyone else think this may affect the popular company over here?
This is just my guess.
Take a look at the last year of the chart, it’s been all over, inconsistent. Stock Symbol DT, T-Mobile has however merged into a contract with syniverse for their networks. So this will be interesting.
Any other predictions?
How about any other stories that anyone has noticed with big companies, anyone else have any stories, predictions, info?
Said 32,000 changed to 19,000 today, conflicting stories, anything above 500 is still a lot of angry jobless people. My prediction is that T-Mobile will be directly affected, but this is just my prediction. The german company itself is the one taking the hit but because t-mobile is related to them I think they will take a hit.
Here’s how I Look at it.
Deutsche Telekom is like big daddy, t-mobile is like grown up son, daddy is proud of his son. Son’s all grown up now. I’m thinking, if daddy’s son is independent enough he’ll be fine but if his son needs to ask for money then his son will be in trouble until daddy either gets on his feet or has to take out a loan and then they’re both in debt.
They’ve been lagging behind in the industry as far as technology.