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Business

Deutsche Telekom Faces Biggest-Ever Loss

German telecommunications giant Deutsche Telekom is reportedly preparing to record the largest-ever loss recorded by a company on the German stock exchange. According to sources cited in the German business newspaper "Handelsblatt," the firm will end the year with a loss of up to 28 billion euro ($28.29 billion).

The greatest portion of the losses is expected to come from large write-offs in the company's mobile telecommunications operations, precipitated by loss-leading American subsidiary VoiceStream -- which the Telekom snapped up for $51 billion (51.56 billion euro) two years ago -- and the collapse of the market for UMTS-based third-generation mobile phones.

Telekom's board is expected to vote on Thursday whether to promote executive Kai-Uwe Ricke to the long-vacant position of CEO as well as discuss the troubled behemoth's future strategy. One thing is certain: the core of Deutche Telekom's savings package will involve huge job cuts. The firm has already announced that 50,000 posts are to be eliminated by 2005.