MUNICH, Germany, July 29 (UPI) -- German technology giant Siemens will likely lay off several thousand people to combat dwindling sales.
Company officials said a sale of a unit of its subsidiary IT service provider SBS, is unavoidable. Roughly one-third of SBS' German 15,000 employees might be affected, the German daily Die Welt reported Friday.
Siemens subsidiary L&A, a logistics firm, is currently $60 million in the red, latest numbers show. Communications unit Com is also losing money, the newspaper said.
Siemens in the third quarter of 2005 it has made roughly $300 million less in sales than a year ago. Siemens head Klaus Kleinfeld called the latest numbers a "harsh setback" for Siemens' current market strategy.
"We fear layoffs at Com, SBS and L&A," Wolfgang Mueller, a labor representative, told the newspaper. Siemens' shares on Thursday fell as much as 3 percent.