Investor-spurned Deutsche Telekom is to axe 22,000 posts in a drive to regain profitability, a report said.

"We plan to cut around 22,000 jobs by the end of 2004," chairman Ron Sommer told German newspaper Bild am Sonntag.

But the job losses would be achieved through natural wastage, "in as socially responsible manner as we have done up to now", he added.

The announcement comes two days ahead of the firm's annual general meeting, where Mr Sommer is expected to receive a stormy welcome from shareholders.

Bad news

Deutsche Telekom investors saw their shares hit a record low of 11.76 euros last week, as the stream of negative news on the firm continued.

The company unveiled a 1.8bn euro first quarter loss, far wider than analysts had expected.

And on Thursday, credit rating agency Moody's cut its outlook assessment for Deutsche Telekom from "stable" to "negative".

On Friday, chief financial officer Karl-Gerhard Eick said the firm was expecting a loss of 5.5bn euros this year, and would remain in the red in 2002 unless the sale of a subsidiary boosted takings.

Mr Sommer has blamed a cocktail of factors, ranging from negative press coverage to the overall tech sector downturn, for the firm's plight.

Changing fortunes

Deutsche Telekom, which is two-fifths owned by the German government, lost 3.5bn euros last year, after buying Voicestream and investing heavily in mobile phone and online services.

In 2000, the firm made a profit of 5.9bn euros.

Deutsche has debts of some 67.2bn euros, the heaviest load of any major European carrier, and is seeking to sell off non-core divisions to pay down that debt.