Deutsche Telekom's subsidiary T-Systems is eyeing a cut of between 4,000 and 8,000 jobs in the next three years, the German business daily Handelsblatt reported Monday.

T-Systems, which provides IT and communications technology for large companies, had been struggling to raise what management perceived to be unsatisfactory profit levels for the year. The company called earnings in the subsidiary's core business far too low, with IT management services for big companies such as Shell being exposed to fierce competition.

According to Handelsblatt, T-Systems currently employs some 29,000 workers, but the company would lay off up to 6,000 in a bid to save costs.

Unions not amused

Unions warned job losses could reach up to 8,000, and promised to put up a fight should such plans materialize.

"If the company is serious about the job cuts, we'll certainly not play along," said Lothar Schröder from the public-sector union Verdi.

Management will reportedly elaborate on its restructuring plans at a meeting of the supervisory board on December 12. Unions feared Deutsche Telekom might for the first time ever accept layoffs for operational reasons.

hg/ccp (Reuters, AFP, dpa)