Simens MenPower Cut

Siemens is to cull 6,800 jobs at its troubled corporate telecommunications unit, after announcing last summer that a relatively small 600 would have to go.

Siemens Enterprise Communications division (SEN) plans to cut 3,800 jobs directly, including up to 2,000 in Germany. SEN's headquarters and other administrative and support functions are expected to be hardest hit.

The main reason for the restructuring is that Siemens has failed to find a buyer for its division. When Siemens created a network partnership with Nokia, some of its activities became obsolete. Talks with Alcatel-Lucent, Nortel, and buyout firm Cerburus to sell off these assets led nowhere. However, sources say these negotiations are still ongoing.