Try the new FT.com

November 11, 2005 7:09 pm

Siemens to cut 3,000 IT unit jobs

  • Share
  • Print
  • Clip
  • Gift Article
  • Comments

Siemens on Friday announced 3,000 more job cuts at its loss-making IT services unit, a day after the German engineering and technology conglomerate declined to comment on further measures.

The job losses, announced by Klaus Kleinfeld, chief executive, in a meeting with analysts, raised questions of whether the company had selectively disclosed information.

Siemens officials said Mr Kleinfeld had misunderstood journalists’ questions the previous day about whether more job cuts were needed, in addition to 2,400 already announced for Germany, as only applying to that country. The 3,000 extra job cuts will be outside Germany.

But one senior Siemens official, before Mr Kleinfeld’s comments on 3,000 job losses were confirmed, said: “If it is true, then he could and should have said it yesterday. That would indeed be selective disclosure.”

People close to Bafin, the financial regulator, said comments about job cuts could be financially sensitive information that needed to be disclosed to all market participants but that in this case the number of workers affected did not seem to be sufficient to justify such a step.

The further job cuts are part of Siemens’s drive to save €1.5bn ($1.8bn) at the struggling SBS division by 2007. Mr Kleinfeld said on Thursday that the group was looking for partners for PRS, its product-related services unit that represents about a fifth of SBS revenues.

Bankers close to other European IT services companies said Siemens was also looking to find a solution for the rest of the division, which made a loss of €427m in the fourth quarter, but that buyers were hard to find. France’s Atos Origin made an offer this year but Siemens judged it “derisively low”, according to people familiar with the
matter.

“The quarterly results were so dismal it cannot help get a deal,” said one banker involved in talks.

The further job cuts came as Siemens disposed of its stake in Juniper Networks, an US internet equipment maker, reaping about $544m in a sale managed by UBS.

Copyright The Financial Times Limited 2017. You may share using our article tools.
Please don't cut articles from FT.com and redistribute by email or post to the web.

  • Share
  • Print
  • Clip
  • Gift Article
  • Comments

NEWS BY EMAIL

Sign up for email briefings to stay up to date on topics you are interested in

SHARE THIS QUOTE