Siemens to cut 3000 jobs

German technology conglomerate Siemens saw its suffering communications and information services division drag down its profits for its fiscal fourth quarter, prompting the company to announce 3000 job cuts internationally.

The company will make the cuts in Siemens Business Services (SBS), its networks and enterprise outsourcing and consulting arm, outside of Germany, though the company did not say which regional offices or business areas would be affected. Earlier this year, Siemens announced 2400 job cuts in SBS in Germany, bringing the total layoff count to 5400 globally.

The SBS division saw a 21% increase in fourth quarter revenue to Euro 1.5 billion ($1.75 billion) and 14% sales growth for the year, but it reported a Euro 427 million loss ($500 million) for the quarter and Euro 690 million ($907 million) loss for the year, most of which was due to goodwill impairment and severance and capacity charges.

Its Communications (COM) division, which encompasses its fixed and mobile networks divisions, also saw incremental revenue growth of 2% to Euro 3.7 billion ($4.3 billion), but a hard profits slide. COM’s earnings fell 81% to Euro 53 million ($62 million) and dropped 36% to Euro 454 million ($532 million) for the year. Those results exclude its ailing mobile handset division, which it sold to BenQ last quarter. Siemens said the division’s falling profits were due to margins pressure form its enterprise and fixed networks units, but they were partially offset by growth in the mobile networks division.