MILAN (Reuters) - Telecom Italia (TIM) and unions agreed on Monday to cut up to 1,300 jobs in Italy this year through a voluntary scheme, two union sources said, as the country’s biggest phone group strives to revamp its business in the COVID-19 crisis. The cuts would amount to around 3% of TIM’s 42,600 employees in Italy and be implemented through an early retirement scheme. In addition, TIM and unions have agreed a potential further 178 jobs cuts to be implemented by the end of 2023 through a separate voluntary layoff scheme, the sources said. TIM declined to comment. The company has already reduced its workforce in Italy using voluntary schemes, with more than 2,500 people leaving the group in 2020. Revenues at the former phone monopolist fell 7.7% in its key domestic market last year, excluding one-off items, hit by the coronavirus crisis and stiffer competition. As the group develops a new cloud unit and boosts cybersecurity, video streaming and Internet of Things (IoT) businesses, TIM might consider hiring new personnel to back its digital drive, the sources said. Under a three year plan unveiled last month, Chief Executive Luigi Gubitosi said the group aimed to more than double revenues from these so-called “adjacent markets”, worth nearly 700 million euro ($831 million) last year. ($1 = 0.8422 euros)