Friday, 23 September 2005

Siemens to Retrench Staff at Telecoms Unit

Siemens has agreed with workers' representatives to scale down German staff levels at loss-making telecoms unit Com and may bring in a 30-hour working week for some employees. Siemens and the IG Metall trade union said on Thursday the deal was aimed at averting compulsory redundancies at Com.

Siemens said on Monday it would axe 2,400 jobs at its unprofitable IT services provider unit SBS and dissolve its third problem unit, Logistics and Automation. Com, Siemens's biggest unit which employs some 60,000 staff worldwide, has struggled to adjust to changes in technology which mean telecoms systems are increasingly Internet- and software-based.

Engineers who used to service telecoms hardware are no longer in such demand as they once were, while at the same time a reluctance among smaller firms to invest in the newer types of system is hurting Siemens's sales. Thursday's deal, which potentially affects up to 4,600 German service, sales and marketing staff in Siemens Com's Enterprise Networks division, will give targeted individuals options to work fewer hours or go part time prior to retirement. Others will be offered help in finding new work through a transfer to a placement and employment firm owned by Siemens.