25 Average number of employees and personnel costs

The average headcount decreased by 1.2 % compared with the prior year. It decreased in Germany by 4.6 % due in particular to efficiency enhancement measures and the take-up of socially responsible instruments in connection with staff restructuring in the Germany and Systems Solutions operating segments, and in the Group Headquarters & Group Services segment. By contrast, the average headcount outside Germany increased by 1.2 %, driven mainly by the integration of Sprint employees following the business combination with Sprint as of April 1, 2020. There was an offsetting effect in the Europe operating segment from the 9.4 % reduction in employees working abroad, due to the socially responsible staff restructuring as well as to the sale of Telekom Romania Communications as of September 30, 2021. In the Systems Solutions operating segment, the 4.0 % reduction abroad was driven by the disposal of a business operation.

Personnel costs decreased by EUR 0.4 billion year-on-year to EUR 18.5 billion. This still includes an increase resulting from the business combination of T‑Mobile US and Sprint in the United States. In most other operating segments, lower headcount resulted in reduced personnel costs. The agreed salary increases from the collective agreements concluded in 2020 had an offsetting effect. All segments, especially the Germany and Europe operating segments, also recorded lower restructuring expenses. In the Europe operating segment, the reversal of other provisions for personnel costs recognized by OTE in 2010 and 2011 in connection with an additional payment of EUR 0.1 billion to the Greek social insurance fund IKA-ETAM also had a reducing effect.