Siemens to cut more jobs

August 3, 2001 Posted: 0706 GMT

LONDON (CNN) -- Siemens, the German communications and engineering company, plans to cut 5,000 jobs at its telecom network business, a report said on Friday.

The move comes a week after Siemens posted a third-quarter loss of 489 million ($428 million) for the three-month period between April 1 and June 30.

Munich-based Siemens has already axed 10,000 positions at its information and communications businesses this year as it struggles to cope with an economic slowdown, Financial Times Deutschland reported.

Its mobile phone and networks businesses took a charge of 790 million in the third-quarter to reorganize its activities as stocks of telecom equipment built up and demand declined.

Siemens' Chief Executive Heinrich von Pierer said last week there will be further job cuts at is units, but declined to give details. Roland Koch, who headed up the loss making unit, was replaced by Thomas Ganswindt.

Von Pierer said last week that the telecoms businesses would need to cut costs by an extra 2 billion, up from the initial 1.2 billion target.

Telecoms equipment makers across the world including Lucent Technologies (LU: Research, Estimates), France's Alcatel (PCGE) and Marconi (MONI) in Britain have shed tens of thousands of jobs this year in the face of a sharp slowdown in orders for telecoms networks and mobile handsets.

Siemens' chips unit Infineon Technologies said last week it would cut about 5,000 jobs, or 15 percent, of its work force amid continuing weakness in the semiconductor market.

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