ontarioguy
07-08-2003, 15:45
[SOURCE TORONTO STAR]
BERLIN—Siemens AG, Germany's largest engineering company, said it will shed 2,300 jobs at its mobile-phone business as demand for wireless networks falls.
The cuts, which amount to 9 per cent of the workforce at the unit, will help save 1 billion euros ($1.59 billion Canadian) through 2004, said Peter Gottal, a spokesperson for Munich-based Siemens. The unit has already announced 4,000 reductions since last year.
Chief executive Heinrich von Pierer, who has overseen 32,000 job cuts in two years, last week took charge of the information and communications division to speed an overhaul and stem losses at Germany's largest employer. Europe's biggest economy had a jobless rate of 10.6 per cent in June.
"Everyone's having to cut right now," said Rob Sellar of Aberdeen Asset Management in London, who plans to buy the stock. "I can imagine we'll see similar cuts at other Siemens units.''
Shares in Siemens, the world's fourth-largest maker of mobile phones, fell as much as 1.6 per cent, to 48.90 euros and traded at 49.50 euros last night in Frankfurt.
Siemens has 420,000 employees in all of its 13 businesses. The company makes products ranging from Osram light bulbs and VDO car parts to power plants and turbines. The information and communications division groups mobile phones, fixed-line networks and information-technology services.
The company has already pushed back profitability targets for the wireless unit, along with four other divisions, granting it until the end of fiscal 2004 to reach an operating margin of between 8 per cent and 11 per cent.
"There's no way the unit will reach its profitability goals next year so why cut more?" said Wolfgang Mueller, a spokesperson for the IG Metall labour union. "We're concerned Siemens is overdoing the job cuts, because once the market rebounds, they'll have thrown their innovative powers overboard.''
BERLIN—Siemens AG, Germany's largest engineering company, said it will shed 2,300 jobs at its mobile-phone business as demand for wireless networks falls.
The cuts, which amount to 9 per cent of the workforce at the unit, will help save 1 billion euros ($1.59 billion Canadian) through 2004, said Peter Gottal, a spokesperson for Munich-based Siemens. The unit has already announced 4,000 reductions since last year.
Chief executive Heinrich von Pierer, who has overseen 32,000 job cuts in two years, last week took charge of the information and communications division to speed an overhaul and stem losses at Germany's largest employer. Europe's biggest economy had a jobless rate of 10.6 per cent in June.
"Everyone's having to cut right now," said Rob Sellar of Aberdeen Asset Management in London, who plans to buy the stock. "I can imagine we'll see similar cuts at other Siemens units.''
Shares in Siemens, the world's fourth-largest maker of mobile phones, fell as much as 1.6 per cent, to 48.90 euros and traded at 49.50 euros last night in Frankfurt.
Siemens has 420,000 employees in all of its 13 businesses. The company makes products ranging from Osram light bulbs and VDO car parts to power plants and turbines. The information and communications division groups mobile phones, fixed-line networks and information-technology services.
The company has already pushed back profitability targets for the wireless unit, along with four other divisions, granting it until the end of fiscal 2004 to reach an operating margin of between 8 per cent and 11 per cent.
"There's no way the unit will reach its profitability goals next year so why cut more?" said Wolfgang Mueller, a spokesperson for the IG Metall labour union. "We're concerned Siemens is overdoing the job cuts, because once the market rebounds, they'll have thrown their innovative powers overboard.''