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Germany's Siemens to cut 7,000 jobs at its SEN corporate telecom unit

Germany's Siemens to cut 7,000 jobs at its SEN corporate telecom unit

Industrial conglomerate Siemens AG will cut 7,000 jobs at its corporate telecommunications unit Siemens Enterprise Networks, officials with knowledge of the plans told The Associated Press on Monday.
The Munich-based company intends to announce the cuts Tuesday after a meeting of its economic advisory committee, officials said, confirming a report Sunday in the Sueddeutsche Zeitung newspaper.
Siemens, whose diverse products include trams, turbines and telecommunications equipment, will eliminate 4,000 jobs in the unit worldwide with 2,000 of those cuts coming in Germany, its home market. Another 3,000 workers, including 1,000 in Germany, will be shifted to other units owned by Siemens or to company partners, said sources who spoke anonymously because the official announcement had not yet been made.
Worldwide, SEN employs some 17,500 people. The unit, which designs large-scale communications systems for corporations, has come under pressure from the availability of cheaper Internet-based telephone systems which has eaten away at its customer base and sales.
Shares of Siemens were up more than 1.5 percent on the news, rising to euro89.03 (US$132.19) in Frankfurt trading.
The move is part of chief executive Peter Loescher's efforts to reorganize and streamline the conglomerate, which has been wracked by allegations of bribery and fraud.
One of Loescher's goals saw him reorganize Siemens' corporate structure into three units _ health care, automation and infrastructure, and energy.
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Updated : 2021-04-14 01:44 GMT+08:00