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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: Mika Kukkanen who wrote (4613)	3/28/2001 6:17:43 AM
From: elmatador	Read Replies (1) \| Respond to of 5390

ERICSSON:MUST LAY OFF AT LEAST 10,000 ACC TO ANALYSTS-DI.SE (News agency Direkt) -- Telecom analysts expect that Ericsson will be forced to implement further staff cuts in order to reach the announced savings target of 20 billion kronor. "It`s not enough with a couple of thousand employees. At least 10,000 more employees will have to leave Ericsson," Handelsbanken stock market strategist and Ericsson analyst Lars Soderfjell told web magazine di.se. In an calculation example Soderfjell shows that the savings target is equivalent to a staff decrease of 25,000 employees if all savings are to be made through staff cuts. "It won`t be 25,000. There are consultants and other cost cuts to be made as well. But I am convinced that Ericsson will need to decrease their staff by an additional 10,000 employees. We`ve only seen the beginning," Soderfjell said. The size of the total savings target of 35 billion kronor, including the previously announced austerity program, also gives negative signals on how the operations are run today, according to analysts. "That there are 35 billion kronor to be made in cost cuts says something about how ineffective the organization has been previously. It means that Ericsson is cleansing its entire organization, not only the telephone business are," Ohman analyst Helena Nordman-Knutson told di.se.

To: Mika Kukkanen who wrote (4613)	4/10/2001 8:23:11 AM
From: elmatador	Read Replies (1) \| Respond to of 5390

Siemens to cut 2,000 jobs at mobile handset unit By Bettina Wassener in Frankfurt and FT.com staff Published: April 10 2001 10:28GMT \| Last Updated: April 10 2001 12:06GMT Siemens, the German electronics and engineering group, said on Tuesday it planned to shed about 2,000 temporary jobs, or 25 per cent of staff, at its mobile phone handset production unit in response to falling demand in the sector. Siemens said it would not extend temporary contracts for 2,000 workers at its three German production sites, which currently employ around 8,000 people in total. "We plan to not extend these limited contracts to balance out production peaks," said Sabine Metzner, a Siemens spokesperson. "We are taking advantage of the flexibility we have to adjust our manufacturing capacity to the worsened market environment." The cuts affect workers at plants in Kamp-Lintfort and Bocholt in north-western Germany and Leipzig in eastern Germany, she said. The move follows similar announcements from rival handset makers, including Ericsson, Alcatel and Motorola, and comes only days after Philips said it was considering disposing of its handset division. Nokia has also announced cut jobs in its networking division and cut its forecast for handset sales growth. Siemens became Europe's second-largest mobile phone manufacturer behind Nokia earlier this year after Ericsson decided to outsource production of handsets to third parties. But margins at Siemens' handset unit have fallen as competition and marketing expenditure have spiralled. In February, Heinrich von Pierer, Siemens' chief executive, warned the annual shareholder meeting that continued investment in such high-growth fields, coupled with weaker-than-expected demand for mobile phones, would burden earnings at the group's Information and Communication unit. Shares in Siemens were up 4.3 per cent at E118.50, as telecoms and technology stocks were broadly in postive territory in early trading in Frankfurt. You see, the Germans just go there and cut. ERICY agonize and go discuss with the members of the social democratic aprty. Guess who will win?