Former Siemens Division to Cut 3,800 Jobs

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Unify, formerly known as Siemens Enterprise Communications has announced plans to halve its workforce, resulting in around 3,800 job losses. Around half the job losses will be in Central Europe.

Siemens sold a majority 51% stake in the division to the USA based private equity group, Gores Group in 2008. The company dropped the Siemens brand last year following a failed attempt at an IPO in 2012.

The company has previously taken steps to modernize operations and processes, expand the product portfolio. However, there are dramatic shifts in the use of communications and collaboration tools in the workplace, increased adoption of cloud-based solutions, and a growing number of software-oriented competitors which have captured market share and increased pricing pressure.

Unify said that as a result, it needs to take steps to accelerate its transition from a traditional hardware manufacturer to a software and services company.

"Today's marketplace is changing rapidly, and the demands that the next generation of users are placing on our customers are changing quickly as well," said Dean Douglas, Unify CEO. "Unify must transform in order to remain competitive, so we are taking these necessary and very difficult steps in order to position Unify to fully respond to the needs of our customers and the marketplace."

The company is also undertaking a review of the future location of the global headquarters, which is currently in Munich, Germany.

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