May 10, 2001

Munich: German electronics giant Siemens announced it would cut 2000 more jobs, taking the total number of reductions to 8100.

The extra job losses would come mostly in the telecommunication equipment and networks sectors, it said in a statement.

The Munich group said it expected to take 350-450 million euros (310-399 million dollars) in restructuring charges "over the following quarters" in the two sectors.

The job cuts include 2600 non-renewals of fixed-term contracts in the mobile telephone business, already announced in April, and 5500 cuts in the networks sector, 2000 more than previously expected.

The job reductions "will first affect maintenance and sales personnel in the United States and in Germany and other European countries," information and communications networks (ICN) division official Roland Koch said in a statement.

Siemens, which is seeking to confront a sluggish telecommunications market, especially slow sales of mobile telephone handsets, is also embarking on an internal reorganisation.

Some 2000 staff members from the ICN division are to be transferred to the information and communication mobile (ICM) division.

Siemens confirmed it expected to save 600 million euros in the networks division due to the measures. Costs could be cut by up to 800 million euros in total in the networks area, it said.

Citing the uncertain economic climate this year, Siemens made no forecast for the current financial year.

The company is aiming for a pre-tax return on sales of more than nine percent from 2003, compared with 5.3 percent at present.

AFP