The cuts were first announced in May and will see the unit lose 30,000 positions, about a quarter of its staff, over the next few years.

Deutsche Telekom said that in addition to the 7,200 jobs going this year, 14,000 posts would be cut next year and another 8,300 would go by 2005.

The company said there would be no compulsory redundancies, and that the head count would be reduced through natural wastage and by redeploying workers elsewhere in the firm.

Deutsche Telekom is seeking ways to boost profits and cut its debt pile of about 64bn euros ($63bn).

During the first half of the year the company posted a loss of 3.9bn euros, despite a 1.6bn euro profit at the T-com business.