Germany's Siemens AG is combining its three global carrier divisions into one unit in a move to lower costs amidst a dramatic slump in network operator spending, the company announced Tuesday.
The restructuring will result initially in the loss of 2,300 jobs at the company's main base in Munich, the company said in a statement.
A company spokesman declined to comment whether the group plans further cuts in its carrier business outside Germany.
Siemens will merge the three divisions -- broadband access solutions, wireline network communications and optical networks -- into one known as Carrier Service.
"By forming one new unit, we aim to cut costs in the areas of research and development, sales and administration," the spokesman said.
The company expects this restructuring move, following several others over the past year, to be among the last as it weathers out one of the sector's worst recessions.
In the first nine months of Siemens' business year (Oct. 1 to Sept. 30), the combined carrier operations posted a loss of 366 million (US$359 million). In the whole of the previous business year, the carrier business reported a loss of 861 million.