Telecom Italia's planned job cuts have been sharply increased to 3,000 across the business, 1,300 more than first announced.
The Italy-based operator announced in July that 1,700 jobs were to go at its Staff, Open Access Cross Activities and IT divisions in a bid to reduce costs.
However, the company said on Monday evening that a further 1,300 redundancies will occur at its Caring Services division.
It is expected the redundancies will be made over the period of three years. Voluntary redundancy is expected to be taken by 330 staff.
A conclusive framework agreement has been signed with trade unions but exact details have yet to be hammered out.
The parties have agreed to reach a final deal within the next month.
The news comes a month after mobile rivals Three Italia and Wind unveiled plans for a €21.8 billion merger.
Telecom Italia CEO Marco Patuano suggested the deal would continue the “cooling off” of competitive pressure in the Italian market.
The operator saw sales fall over two percent in the first half of the year, but the decline continues to slow.
In June, Vivendi became the majority shareholder in Telecom Italia.
During a busy summer, the company also announced a rebrand under the TIM brand as it bids to reposition itself in its home market.
Telecom Italia has 66,000 employees, with around 53,000 based in Italy.
Daniela Biscarini, Head of Multimedia Entertainment at Telecom Italia, will be speaking at our OTT/Digital Content Strategy Seminar on 8 October. Click here to register for free