Prospectus-Final (clean) - Malta Financial Services Authority

Employees in the Group 31 Dec. 2011 31 Dec. 2010Breakdown by geographic areaGermany 121,564 123,174International 113,568 123,603Of which: other EU Member States 64,257 68,941Of which: rest of Europe 9,736 9,991Of which: North America 33,511 38,467Of which: rest of world 6,064 6,204Employees – GermanyDeutsche Telekom's Germany operating segment employed 76,028 people on average in 2011,making it one of the largest employers in Germany. The decline in headcount compared with 2010was mainly attributable to Deutsche Telekom's socially responsible staff-related measures and tostaffing changes within the Group. New hires, especially of junior staff, partially offset the decline.Deutsche Telekom's Germany operating segment had an average of 79,364 employees in 2010.Despite the increase in the number of employees as a result of the first-time consolidation of STRATOand ClickandBuy, headcount at Deutsche Telekom's Germany operating segment decreased by 6.2%,mainly due to Deutsche Telekom's socially responsible measures to reduce and restructure theworkforce by transferring employees to Vivento.Employees – EuropeThe decline in average headcount in 2011 was largely due to downsizing programs in Romania andGreece. Downsizing programs were also implemented in the other countries in this operatingsegment, although on a smaller scale. The deconsolidation of T-Mobile UK also contributed to theyear-on-year reduction in average headcount.In 2010, the decline in the average headcount in Deutsche Telekom's Europe operating segment wasprimarily a result of the deconsolidation of T-Mobile UK. Downsizing programs as part of efficiencyenhancement measures in several countries also reduced the average headcount. This decline wasoffset by an increase in the number of employees resulting from the first-time full-year consolidation ofthe OTE group in early February 2009. In addition, some smaller-scale acquisitions added to theheadcount.Employees – United StatesIn 2011, the decrease in the average number of employees was due in part to a decline in customersupport employees, driven by lower customer care call volumes, and in part to a decrease in thenumber of retail employees, due to the implementation of labor efficiency and store rationalisationprograms.The average number of employees decreased slightly in 2010, as a decrease in customer supportemployees driven by lower customer care call volumes was offset partially by an increase inemployees related to retail distribution growth.Employees – Systems SolutionsIn 2011, the average number of employees in Germany increased by 453 or 1.8% while the averagenumber of employees internationally rose by 183 or 0.8%. The increase was largely due to staff takenon in connection with large-scale contracts, an increase in insourcing (the provision of servicespreviously rendered by third parties), and the development and expansion of nearshore and offshoresites.107