Siemens lays off 2,400 staff in 1.5bn savings drive

Expect more to come...

Post a comment
Print

By Jo Best, 19 September 2005 17:20

NEWS Siemens has announced sweeping job cuts across three of its divisions in an effort to cut operating costs by 1.5bn.

Reports surfaced last week that Siemens was to make sweeping job cuts, with a figure of 10,000 layoffs being mentioned.

However, Siemens CEO Klaus Kleinfeld confirmed in a conference call today the number of job cuts will be 2,400 from the company's Business Services (SBS) division in Germany, while its Logistics and Assembly and Communications units will also be reorganised.

Further job cuts in Siemens' Communications division will follow, although no official figure was released today.

Kleinfeld described the layoffs, which will take place over the next two years, as "unavoidable" and added: "We are not making a mistake, I think what we are really doing is continuing to increase value for SBS."

Siemens will also be rejigging its management team to keep the cost-cutting programme on track. Dr Christoph Kollatz will take over as SBS' CEO, replacing Dr Adrian von Hammerstein, while current SBS CFO Bernd Regendantz will be replaced by Michael Schulz-Drost.

As part of the changes at Siemens, the Enterprise Networks division - part of the communications unit - will turn its attention to wooing corporate customers as it has found small and medium-sized businesses are still shy of investing in technologies such as VoIP.

Post a comment
Print

Post your comment

In order to post a comment you need to be registered and logged in.

Latest IT Services stories

Featured white papers

Vulnerability Management Buyer's Checklist

Qualys

Key Questions to Ask Before You Select a VM Solution Choosing a solution for Vulnerability Management (VM) is a critical step toward protecting your organisation's network and data. Without proven, automated technology for precise detection and remediation, no network can withstand the daily onslaught of new vulnerabilities that threaten security. To help finalise your decision on which solution to buy, Qualys provides this 12-point short list of considerations that will help you determine what will work best for your organisation.

Download now »
Creating a Dynamic Infrastructure through Virtualization

IBM

In almost every case,the transformation to a dynamic infrastructure will involve virtualization.Many IT professionals think of virtualization specifically in terms of servers.IBM,however,has a broader perspective,in which virtualization is seen as a generalapproach to decouple logical resources from physical elements,so that thoseresources can be allocated faster,more cost-effectively and more dynamically,wherever the business requires them in real time to ideally meet changingdemand levels or business requirements.

Download now »
How IP geolocation can improve your website experience and marketing activity

Quova

With geolocation technology, you can know a web user's real world whereabouts. This report examines the benefits from the fictional retailer's point of view. Things-4-You- a thriving online business, which had a poor record in converting online visitors into buying customers. Things-4-You demonstrates the potential of IP geolocation online. retailers.

Download now »