Feeds

Siemens to axe 6,000 telecoms jobs

SENding work overseas

Security and trust: The backbone of doing business over the internet

Siemens is to cull 6,800 jobs at its troubled corporate telecommunications unit, after announcing last summer that a relatively small 600 would have to go.

Siemens Enterprise Communications division (SEN) plans to cut 3,800 jobs directly, including up to 2,000 in Germany. SEN's headquarters and other administrative and support functions are expected to be hardest hit.

The division has 17,500 employees worldwide.

On top of the layoffs, SEN intends to sell or find partners for some of its facilities, such as those in in Thessaloniki (Greece) and Curitiba (Brazil) which have 270 and 470 employees, respectively. It is also seeking a partnership with an IT provider for about 570 employees involved in direct sales to customers for small and mid-sized systems.

The main reason for the restructuring is that Siemens has failed to find a buyer for its division. When Siemens created a network partnership with Nokia, some of its activities became obsolete. Talks with Alcatel-Lucent, Nortel, and buyout firm Cerburus to sell off these assets led nowhere. However, sources say these negotiations are still ongoing.

"In a dramatically changing telecommunications market for enterprise solutions, this transformation is absolutely essential and supports Siemens' ongoing efforts to find a suitable partner for SEN," the company said in a statement today.

Apart from SEN, another 239 jobs will be go at Nokia Siemens Networks in Finland. Nokia Siemens employs about 5,100 people in that country, including 2,300 in Oulu and about 1,100 in Tampere.

UK union Unite reaction reacted angrily to the move, saying it would challenge any layoffs in the UK. National secretary Peter Skyte, claimed the company was dressing up the divions to make it more attractive to potential buyers.

“The highly skilled Siemens Enterprise Communications workforce in the UK should not be used as poker chips to secure a higher sale price," he said "Unite will challenge any potential redundancies affecting the UK operations in Beeston (Nottingham) connected to this sale.”

The announcements are another painful setback for Siemens. The firm's mobile phone business was sold off to BenQ, and within 18 months found itself bankrupt. At least 3,000 workers lost their jobs.

Also, its enterprise unit was recently at the centre of a corruption and bribery scandal. A court in Munich found that Siemens had bribed public officials in Libya, Russia, and Nigeria in return for the awarding of contracts. ®

Beginner's guide to SSL certificates

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.