Siemens bundles carrier business, cuts 2300 staff
Siemens ICN 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 headquarters, part of a pre-announced plan to reduce staffing to about 20,500 — 35% of its original level.
Carrier activities, currently shared between Access Solutions (broadband), Wireline Network Communication (SURPASS etc), and the Optical Networks divisions, will be combined into the new Carrier Service division.
Also, Siemens’ systems business is being "horizontally organised" into Development, Production, Sales, and Administration. The focus on carrier activities will "fully exploit the promising potential offered in the carrier services area", as carriers focus more on core activities and cost cutting.
IC Networks chief Thomas Ganswindt said, "We have the right technologies, the right products, and the right solutions. We are adjusting our break-even point to the level of the weak market.
"We expect that all the necessary structural adjustments at ICN will be complete once these measures are fully in place."