Siemens announces 2000 more job cuts

Siemens AG said today it would slash 2000 more employees from its information and communication network (ICN) business unit to hit earnings targets the company set in December.

The German electronics and engineering giant said the restructuring move would achieve cost savings of 800 million euros ($708.2 million), although over the next few fiscal quarters, the company will take 250 million euros ($221.3 million) in restructuring charges.

Last month, Siemens announced 3500 job cuts at its ICN fixed network division and said earlier it would trim 2600 from its mobile division because of reduced estimated demand for mobile handsets worldwide. The company said the mobile job cuts would save 600 million euros ($531.1 million).

In total, Siemens has reduced its staff by 8100 this year, which represents just 2% of the company’s work force of 400,000.

“The measures we are implementing today will substantially strengthen profitability,” the company said in a statement today.

Siemens said employees affected would primarily be sales and maintenance staff in the United States, Germany and other parts of Western Europe. A spokeswoman said the number of employee cuts has not been regionally broken out and that no timetable to do so is set.