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Siemens cuts 2,000 jobs
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May 10, 2001: 3:56 a.m. ET
German engineering and technology company brings job losses to over 8,000
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LONDON (CNN) - Siemens announced 2,000 more job cuts, bringing to more than 8,000 the number of jobs slashed by the German electronics group this year.
The company said it will reduce the workforce at its fixed network business as part of a cost-cutting drive.
The job cuts are the latest in the tech industry on both sides of the Atlantic as the U.S. slowdown affects sales. On Monday, Dell Computer Corp (DELL: Research, Estimates) announced it was slashing 4,000 jobs.
The worsening climate in the telecoms equipment market hit Siemens' second-quarter results last month, forcing the group to suspend its previous forecast that earnings growth would outpace sales in 2001.
Siemens recently said it would not renew 2,600 temporary contracts in its mobile handset division and would scrap 3,500 jobs in its network unit.
The network unit of Siemens saw earnings drop from  183m ($162.8m) to 50m in the second quarter year-on-year, under pressure from heavy investments.
The mobile handset division, the world's third-largest, made a loss of 143 million.
The latest cuts will lead to restructuring charges during the next few quarters of 100 million for the mobile division and 250 million for networking, Siemens said.
Siemens (FSIE) shares were unchanged in early Frankfurt trading at 82.61. 
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