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Atos logo at the Düsseldorf location: targets for the financial year lowered
Photo: Karl F. Schöfmann / imago images / imagebroker
The French IT service provider Atos is cutting around 1,300 jobs in Germany.
The company announced that an agreement had been reached with the social partners.
The job cuts affect the Group's traditional infrastructure business.
Atos employs around 5,000 people in Germany in this area, which includes data centers and IT experts at customers' sites.
In Atos, the former Siemens SIS division, which the Munich-based technology group had sold to the French in 2011, was opened.
The largest single shareholder of Atos is the Siemens pension fund, which holds almost ten percent of the shares.
Atos expects the downsizing this year to cost 180 million euros.
The cuts are part of the Group's conversion to digital and cloud business.
Share price drops significantly
The corona pandemic has accelerated the trend towards digital solutions.
Atos has given up its sales and profit targets for the current year in view of the consequences of the pandemic.
Instead of the prospect of sales growth of 3.5 to four percent, the service provider only expects sales to stagnate.
In the second quarter, business fell by 1.5 percent.
Atos reduced the targeted operating return on sales from 9.4 to 9.8 to 6.0 percent.
In the first half of the year it was only 5.5 percent.
After the announcement of the new targets, the Atos share lost massively in value.
The rate fell by 16 percent to 44.44 euros by the afternoon.
A Parisian analyst spoke of a "massive loss of confidence," and it would take time for Atos to regain confidence.
fdi / Reuters
