Technology giant Siemens AG said it is cutting an additional 7,000 jobs from its fixed-line and mobile telecommunications groups and will close or sell 10 of its 20 production facilities worldwide by the end of next year.
The job cuts and the reduction in the number of its production facilities are part of cost-cutting measures aimed at returning Munich, Germany-based Siemens to profitability, the company said. The restructuring is expected to save Siemens US$1.8 billion. In the third quarter, the company posted a $447 million loss on $17 billion in sales.
Siemens said the job cuts will come from its unprofitable telecommunications businesses.
Siemens spokeswoman Sabine Metzner said 5,000 of the cuts will come from the Information and Communications Networks Group (ICN), its fixed-line division, while 2,000 jobs will be slashed from the Information and Communication Mobile Group, its mobile telecommunications unit. The company said half of the 7,000 cuts will be made in Germany.
Including those cuts, Siemens has reduced its staff by 17,000 in the past year. Worldwide, Siemens employs approximately 499,000 people, including its semiconductor unit Infineon Technologies, Metzner said.
Metzner said Siemens, like other telecommunications companies, is suffering from a downtown in the market.
"I am convinced that with our global presence, our excellent customer relationships with successful carriers and companies and our comprehensive know-how in voice communication we will succeed in resisting the general market trends and make ICN a long-term earnings leader at Siemens once again," said Thomas Ganswindt, president of ICN, in a statement today.