Siemens is to cut 6,800 jobs in its corporate telecoms unit SEN as it restructures the division.
Siemens hopes to turn SEN into a software provider and then sell it.
It plans to cut 3,800 jobs worldwide and reduce staff numbers by another 3,000 through the use of outsourcing and partnerships.
SEN specialises in providing communication systems for big companies, but has been hit by the rise of internet telephony.
The unit will abandon its manufacturing operations and be transformed "into a software and solutions provider", according to a statement from Siemens.
The jobs represent about 40% of its total headcount.
Of the jobs affected, 3,200 will be in Germany, with the rest spread around sites in Argentina, Brazil, Chile, Colombia, Ecuador, Greece and Peru.