25 Average number of employees and personnel costs

The average headcount decreased by 4.3 % compared with the prior year. It decreased in Germany by 4.4 % 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. The average headcount outside of Germany also decreased by 4.3 %, driven mainly by the sale of Telekom Romania Communications as of September 30, 2021 and of T‑Mobile Netherlands as of March 31, 2022. In Europe, we continued to drive forward the socially responsible staff restructuring. Increased recruitment in the Systems Solutions operating segment had an offsetting effect. In the United States, the headcount was reduced as a result of targeted rationalization to cut costs, in part as a consequence of the business combination with Sprint.

Personnel costs increased by EUR 1.0 billion year-on-year to EUR 19.4 billion. The increase is in particular attributable to the United States operating segment, with EUR 0.9 billion relating to exchange rate effects and with EUR 0.3 billion relating to higher integration costs as a result of the business combination with Sprint and other restructuring expenses. Due to the sale of T‑Mobile Netherlands as of March 31, 2022, personnel costs decreased by EUR 0.1 billion in the Group Development operating segment. In the Germany, Europe and the United States operating segments and in the Group Headquarters & Group Services segment, lower headcounts resulted in a reduction in personnel costs. The agreed salary increases from the collective agreements concluded in 2022 in Germany and abroad had an offsetting effect. Restructuring expenses remained unchanged, which had a negative effect of EUR 0.1 billion as compared with the prior year, when the reversal of a provision for personnel costs had a positive impact.