T-Systems SA will be able to say only in July to what extent a streamlining process will result in staff cuts.
A company spokesman says T-Systems has set itself the task of saving R77 million through a streamlining programme.
"The goal of the streamlining project is to right-size the company`s cost structures with existing and potential customers` revenue developments as well as to increase T-Systems` efficiency and competitiveness in order to secure new business," the company says.
The programme has targets that will run over six months.
"It is important to note that every other avenue of cost-saving and streamlining was investigated before considering personnel reductions. These measures included immediate reductions on administration expenses, negotiating better rates with external suppliers, etc."
However, the company says it will have to reduce payroll costs to achieve its targets, implying staff cuts.
"At this stage, it is impossible to give an exact number of those affected as we are following a step-by-step approach and many factors influence the number of people that may be affected. The final number of people affected will be available at the end of the process in July.
"The fact that we don`t have debt issues driving the streamlining programme at T-Systems puts us in good stead to remain strong and we are confident that T-Systems will continue to be a force to be reckoned with in the ICT market, here and abroad," the company says.
T-Systems was launched in 2001 through a merger between Deutsche Telekom`s IT services and debis Systemshaus. In January 2002, Deutsche Telekom acquired the remaining 49.9% shareholding.
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