Siemens Cuts 39% of Corporate Telecom Workforce

6:55 am on February 27, 2008 | Category: Business, Corporate

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Europe’s biggest engineering company, Siemens AG, is downsizing its corporate telecommunications division with the elimination of 6,800 jobs, after failing to find a buyer for the unit for the past two years.

The job cuts represent about 39% of Siemens’ 17,600 corporate telecom employees.

“Something had to happen as the unit just doesn’t fit into the company’s portfolio anymore,” commented M.M. Warburg analyst, Michael Bahlmann, who recommends buying Siemens stock. “The job cuts will hopefully make it easier to sell the business.”

Siemens put the telecom business up for sale in 2006 after merging its networking equipment division into a joint venture with Nokia. The company has since held talks with a number of potential buyers, including Alcatel-Lucent, Nortel Networks, and buyout firm, Cerberus Partners LP, according to sources cited by Bloomberg.com.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock