Siemens cuts 2,000 more jobs

Siemens is cutting another 2,000 jobs in a bid to make its telecoms operation profitable.

The redundancies in the information and communication networks business come on top of 3,500 cuts announced at the unit last month.

It is believed that most of the redundancies will be in Germany. It brings the total job losses in Siemens' telecoms arm to 8,100 this year.

The German electronics and engineering group says the measures should boost profits in its telecoms operation, which has been hit by the sector's global slowdown.

Siemens is looking for savings of £500m from the information and communication networks which makes equipment for fixed line telecoms networks.

It also aims for £374m savings in its handsets and mobile networks division.

Siemens said it expected the more difficult market conditions to continue for some time.

Yesterday, Siemens warned that it may sell fewer mobile phones than expected this year.

It now expects mobile phone sales to be closer to 400 million than 450 million. In March it said the figure would be 'roughly' 450 million.