Further jobs could go in Germany at T-Systems, the IT subsidiary of German telecom group Deutsche Telekom, which was already planning to cut 5,500 jobs, a report from Financial Times Deutschland said.
Quoting T-Systems head Lothar Pauly, the report said the work done in Germany had to be "combined" with that done in low-cost countries in order to maintain competitiveness.
Sites in Hungary, Russia and Slovakia would, therefore, be expanded, although management could not say if this would mean further job losses in Germany.
But Pauly believed that T-Systems would remain part of the Deutsche Telekom group.
Last year, T-Systems achieved a turnover of 600 million euros, 15% of which was achieved outside of Germany, the report said.
To increase this proportion to 30% by 2010, Pauly was planning to carry out acquisitions abroad and to boost organic growth, the report further said.