SIEMENS IT company to lay off 3 thousand mainly for overseas branches

SIEMENS IT subsidiary company to lay off 3000

Newspaper reporter Fan Songlu comprehensive report

German SIEMENS AG (Siemens) will be in its poor performance IT subsidiary layoffs 3000 people. Bloomberg News Agency quoted 11, SIEMENS spokesman said the company's information technology subsidiary, SIEMENS business services company (Siemens Business Services, hereinafter referred to as "SBS") serious losses, the layoffs will be mainly for the SBS branch outside Germany. Prior to September 19th, German subsidiary SBS has announced plans to cut 2400 redundancies. Coupled with the layoffs, the total number of layoffs will reach 5400 people, accounting for SBS of all employees of 14%.

SIEMENS announced plans to cut jobs in September, said it plans to cut the cost of 1 billion 500 million euros before SBS in 2007. As a result of overcapacity, fierce competition and information technology services industry, SBS difficult situation, generating 690 million euros in operating losses at the end of September 30th 2005 fiscal year 2004 fiscal year profit of 50 million euros, which dragged down the market performance of the company SIEMENS. SIEMENS 10 announced the financial report, the company's net profit in the fourth quarter than last year dropped by 88%, to $77 million, compared to the same period last year was $654 million. SIEMENS CEO Kleinfeld (Klaus K leinfeld) is expected in the 2006 fiscal year sales growth will be at least flat with the 2005 fiscal year.