Siemens poised to cut 3,000 more jobs as slowdown bites

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The Independent Online

Siemens, the Munich-based electronics and engineering business, is thought to be planning a further cost-cutting exercise in the face of tough economic conditions.

A spokesperson for the company, which employs around half a million people worldwide, said a decision on any additional cost-cutting measures was expected in the coming weeks.

Siemens, which has already unveiled plans to cut 10,000 jobs including 8,000 in its telecoms business and 2,000 in its IT services arm, is considering axing an extra 3,000 positions.

It has been forced to take drastic action this year, having been hit hard by the slowing economic activity, in particular in the telecoms industry. The company's broad portfolio of products includes mobile phones.

Siemens reported a loss last month of 489m euros (£309m) for the third quarter ending 30 June after its information and communications business plunged into the red.

At the time of third quarter results, Heinrich von Pierer, Siemens' chief executive, said "further measures" were under consideration to improve the company's performance.

"The 1.2bn euro restructuring programme we announced in the spring was ambitious, yet not enough. In the coming weeks, we will define further steps to expand this programme to at least 2bn euros," Mr von Pierer said as he warned that the global economic environment would continue to be difficult over the next few months.