German-based Siemens AG announced plans to cut costs at its mobile phone unit by a total of 1 billion euros (approx. U.S. $1.32 billion).
Lothar Pauly, the head of Siemens' communication division, said that savings of up to 600 million euros (approx. $793 million) should be achieved in the current fiscal year, which ends Sept. 30, 2005.
Mr. Pauly would not give exact details of the program, but said it would focus on cuts in marketing spending rather than layoffs. He also said the company will launch 15 models, including third-generation handsets, this year to regain market share.
In Siemens' first fiscal quarter, the handset unit posted a loss of 143 million euros (approx. $189 million), compared with a profit of 64 million euros (approx. $85 million) a year earlier. For the 2004 fiscal year as a whole, it lost 152 million euros (approx. $200 million). (AP)
to Daily News