Siemens to Downsize Telecommunications
Posted by on Feb 8, 2008
Posted on: Monday, 25 February 2008, 15:00 CST The German engineering firm Siemens AG is expected to cut 3,800 jobs from its telecommunications equipment division, it was reported Monday. A source close to the huge Munich company said Siemens will announce the cuts Tuesday and will also move 3,000 jobs away from telecommunications into other divisions.
Siemens posted $29.7 billion in annual telecommunication equipment sales less than a decade ago, but has been retreating from the business in recent years. Siemens sold its mobile handset division in 2005 and transferred thousands of telecommunications equipment jobs to Nokia in a 50-50 joint venture in 2006. The company is down to 17,500 telecommunications workers currently, The Wall Street Journal reported.
Beset by competition from Chinese concerns, where labor is cheaper, Siemens has been trying to sell its telecommunications equipment division outright to focus on energy, healthcare and factory automation, the report said. The company employs 430,000 worldwide, the report said.