Fujitsu Siemens to cut 700 jobs in Germany

Fujitsu Siemens Computers plans to slash around 700 jobs in Germany -- 12 percent of its workforce in the country -- due to continued competitive and economic challenges, it said on Thursday.

Fujitsu Siemens Computers Holdings (FSC) is Europe's biggest maker of personal computers and employs about 10,500 worldwide, most of whom are in Germany.

It said the job cuts were not a result of its new ownership structure but rather a move to improve profitability and competitiveness.

Management began talks with union representatives about the plans on Thursday, Fujitsu Siemens said.

Earlier this month, Japanese electronics conglomerate Fujitsu Ltd said it will buy Siemens AG's 50 percent stake in the business for 450 million euros ($580.5 million).

Fujitsu had said at the time it had no plans for any job cuts.

Profit margins are thin in the PC business, which is largely commoditized and fiercely competitive on price.

Source : Reuters
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