Siemens cuts more jobs

Hi-tech firms such as Siemens have had a tough year

The German electronics and engineering giant Siemens, hit by tough conditions in the telecoms equipment market, has said it will cut its workforce by a further 2,000.

The announcement comes only weeks after it last said it would lay off thousands of staff.

The job latest cuts will affect jobs at Siemens' ICN fixed-line telecoms equipment division where the group aims to slash costs by 800m euros ($709m; £499m).

The latest job cuts will be accompanied by the transfer of 2,000 jobs to TCM, its mobile phone division.

And the group will take a 350-450m euros restructuring charge which will pay for necessary changes to its telecoms equipment and networks business.

"The measures should clearly boost profitability," Siemens said.

Mobile handset slump

The latest job cuts announcement means a total of 8,100 people working for Siemens will have lost their jobs so far this year.

These include the non-renewal of 2,600 short-term contracts in Siemens' mobile phone business.

The ongoing slump in the mobile phone sector would also affect the buildup of new-generation mobile phone networks, Siemens said.

In addition, 5,500 jobs will go in the telephone networks sector.

"We expect the difficult market conditions will continue for the moment," Siemens said.

Siemens shares rose on the news of the job cuts and the restructuring charge.