Siemens ICN bundles its carrier business; sheds 2300 staff

1 October 2002 -- Siemens Information and Communications Networks is combining carrier activities in its "Access Solutions", "Wireline Network Communication" and "Optical Networks" divisions into a new "Carrier Service" division, involving 2300 job cuts at its Munich HQ.

1 October 2002 -- Siemens AG's Information and Communications Networks group is restructuring its carrier business, effective from the start of November. The plan will result in a loss of 2300 jobs at its Munich-Hofmannstrasse headquarters, part of a pre-announced plan to reduce staffing to about 20,500 (35% of its original level).

Carrier activities are currently distributed among "Access Solutions" (broadband access), "Wireline Network Communication (EWSD, SURPASS)" and "Optical Networks" divisions, but are being combined into a new "Carrier Service" division.

Siemens says that this is in order to benefit from synergies and to secure an end-to-end basis in making products available for next-generation networks. IC Networks is targeting the areas of Next Generation Switching, Next Generation Access, and Next Generation Optics.

Also, systems business is being horizontally organised into Development, Production, Sales, and Administration. The focus on carrier activities will "fully exploit the promising business potential offered in the carrier services area", as carriers are focusing more on core activities and on reducing costs. Siemens says that the aim is to create stable, viable structures and cost positions that are sustainable in a market that remains weak.

In the Enterprise field, IC Networks will continue to pursue unchanged the IP convergence strategy it has embarked on with HiPath.

"We have the right technologies, the right products, and the right solutions. We are adjusting our breakeven point to the level of the weak market," said IC Networks chief Thomas Ganswindt. "We expect that all the necessary structural adjustments at ICN will be complete once these measures are fully in place."

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