Siemens has confirmed that 2,400 jobs are to be axed at its IT business in Germany over the next two years as the technology and engineering giant looks to cut costs.

Speculation has grown over recent weeks about the scale of the job losses as Siemens looks to cut overheads in a bid return to "sustainable profitable growth".

In particular, three loss-making businesses - Siemens Business Services (SBS), Communications (Com) and Logistics and Assembly Systems (L&A) - are facing restructuring.

IT operation SBS is to cut overheads by €1.5bn by 2007. As part of that plan it is also axing 2,400 jobs in Germany over the next two years.

In a statement Siemens said: "SBS is accelerating its operational reorientation [and is] initiating an extensive program to improve its competitiveness."

Dr Klaus Kleinfeld, Siemens president and CEO, added that the company's goal is "to quickly put all businesses on a course of profitable growth.

"We do what needs to be done to achieve our earnings targets. Our customer offerings will thus be even more competitive, which is the basis for our company's success and for the future security of jobs at Siemens.

"Only successful businesses can secure and create jobs," he said. ®

Related stories

• Siemens Business Services rejigged again (13 October 2006)
• Siemens rejigs SBS (again) (7 July 2006)
• Siemens back to immigration (23 February 2006)
• Siemens to carve up services arm (9 December 2005)
• Siemens cuts 3, 000 jobs (14 November 2005)
• BenQ-Siemens phone firm readies dual brand (3 October 2005)
• Job losses loom at Siemens (15 September 2005)
• SBS wins Microsoft support contract (8 June 2005)
• Siemens conducts customer ejaculation survey (25 May 2005)
• Siemens to spin off loss-making phone unit (28 April 2005)