Speculation as to the eventual number of jobs to be lost at Siemens COM division escalated yesterday when a source close to Comms Business Magazine indicated that up to 7000 posts could be lost world-wide as the troubled division seeks to reduce costs in an effort to improve their attractiveness to potential buyers. Earlier reports had indicated that 1200 jobs would be lost.
Comms Business Magazine also understands that 500 jobs in the UK have been placed at risk with 132 jobs certain to go in the restructuring process.
Our source added, “People are re-interviewing for their jobs, or for new jobs this week. Mostly it is those associated with the direct sales operation that will go – sales, marketing, administration, management and technical support.
Siemens has been quick to clarify the position with Rob Simpson from the Siemens press office confirming that a re-structuring was taking place but he ‘did not recognise’ the 7000 figure for world-wide lay-offs.
“The re-structuring is required to improve the profitability of the company.” Said Simpson, adding, “The figure of 132 actual job losses within Siemens Communications UK could be accurate.”
Today, Paul Mould, Operations Director at Siemens Communications UK, confirmed he expected around 135 posts were to go as a result of re-structuring but that the figure of 7000 world-wide is wrong and that speculation over 500 UK jobs being at risk was irrelevant.
“There is a lot of speculation in the market but Siemens has made no announcement that COM division is for sale. I can confirm earlier reports of 1200 job losses world-wide. These are difficult times and there is a lot of tension about. Siemens has recently confirmed at a UK Channel Partner event our commitment to the channel and our continued investment in the channel and we are looking to accelerate our business in the channel.”
“What is going on (the restructuring) is regrettable but is a reflection of what is happening in the market. We are taking the appropriate moves now as we do have to provide a return to our shareholders – as every business does. In terms of the channel we are investing hard, we have a great product portfolio and we are moving ahead of our competitors.”