German telecommunications company Deutsche Telekom AG (DTE.XE) has reached an agreement with union representatives in Hungary to scrap 500 jobs in the country due to the generally difficult economic conditions in Europe, the company's Europe head Claudia Nemat told German newspaper Handelsblatt.

In a preview of Tuesday's edition, Handelsblatt reports that Ms. Nemat doesn't expect European business to improve before 2014. At the moment, the focus is on slowing the decline in sales, she told the business paper, and that this has been successful.

"We want to continue in this direction and return to very moderate growth in 2014," Ms. Nemat said.

To reach this goal however, more job cuts are necessary, she said. In addition to job reductions in Hungary, the company is also having talks in Greece, she added.

Selling its 40% stake in Greek company Hellenic Telecommunications Organization, or OTE, (HTO.AT) isn't up for discussion, Ms. Nemat told Handelsblatt. "OTE is profitable and gaining more customers," she said.

Newspaper website: http://www.handelsblatt.com

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