Siemens Q2 results came in above market forecasts, but the company has still announced it will be increasing its cost-cutting measures, by axing an additional 6,500 jobs at its ICN fixed network unit.
The German company will take a E300 million charge in Q2 to cover the cost of the restructuring plan. The job losses announced on Thursday follow the 10,000 cuts at the unit over the last year and the 20,000 job losses over two years announced on Monday.
Net profits for Q2 were E1.28 billion, compared to E578 million for the same period last year. Sales for its networks unit declined 16% from last year to E2.66 billion, as it suffered from the spending reductions made by telecom operators. Its ICM mobile unit remained in profit, although sales were flat at E2.73 billion.