Telefonica O2 Germany has confirmed plans for O2 and HanseNet to become an integrated telecommunications company. This will create the third largest telecoms provider in Germany in terms of revenue, with the company continuing to operate under the name of Telefonica O2 Germany with its head office in Munich. To ensure sustained growth, all departments will be reorganised, resulting in the loss of around 1,100 jobs. Telefonica O2 Germany CEO Rene Schuster said the merger of two strong companies into one would create a future-oriented organisation that can respond quickly to the market and provide new bundled products for customers. Under an agreement with Telecom Italia, the Alice brand will be retained for more than two years before becoming O2. Hamburg will be preserved as a site. O2 will manage the technology from Munich and Hamburg in future. The Verl branch as well as offices in Dortmund, Frankfurt, Hanover, Leipzig and Stuttgart will be closed. The integration should be completed by end-March 2011, with job losses spread over both companies. The reduction of the workforce to around 5,000 will be done in line with the social contract without enforced redundancies.
