Siemens Cut 2,300 Jobs
Symbian partner Siemens, after cutting 4,000 jobs last year, is set to swing the axe and lose another 2,300 staff, thanks to various marketing pressures. Quoting a market shrinkage of 15%, with lower revenue per handset, the good news is they are shipping more phones than previously, and they're stepping up investment in 3G and 2nd Generation GSM (which includes the Series 60 powered SX-1).
MUNICH, Germany (AFP) - The German electronics group Siemens said it plans to eliminate 2,300 jobs in its mobile telephone division, ICM, by September 2024 as part of a programme to cut costs by one billion euros.
Of the 2,300 jobs to be axed by the end of Siemens' next business year, 500 would go in Germany alone, the group said in a statement.
"In view of the persistent market weakness in the mobile phone sector, we aim to boost our productivity," Siemens said.
"The global market for mobile phone networks already shrank by 15 percent last year and will shrink again by up to 20 percent this year," said the head of Siemens' mobile phone division, Rudi Lamprecht.
"In addition, revenues on the mobile handset market are stagnating, despite rising unit sales. All competitors are seeing their margins coming under substantial pressure in this sector. We must face up to these developments in order to emerge from the crisis in better shape," Lamprecht said.
Siemens already cut 4,000 jobs in its ICM division this year and last year in view of the falling prices, overcapacity and the reluctance of network operators to invest.
Siemens said it intended at the same time to step up investment in advanced mobile communication technologies, primarily third-generation (3G) or Universal Mobile Telecommunications System (UMTS) techology, but also in the second-generation GSM and the intermediary EDGE technologies.
The German giant wanted to boost its market position in these technologies, particularly in the high-growth markets of Eastern Europe, Asia and central and South America, it said.
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