Siemens to merge service, software units to cut costs
Munich: Siemens, Europe's largest engineering company, will combine its unprofitable computer-services division with software development subsidiaries and will create a new subsidiary called Siemens IT Solutions and Services, Munich-Siemens said in a statement today. The new division to start operations by January '07 will have annual sales of about E5bn and employ about 43,000 people.

Siemens' computer-services division's rising losses had become the company's biggest obstacle in its quest to bring all 11 main divisions within the profitability ranges he set for April.

Siemens plans to get E1.5bn in savings from the revamp, which includes longer working hours at no extra pay for workers. To obtain the savings Siemens will expand into low-wage regions such as Easter Europe.
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France, Germany to solve Airbus crisis on equal terms
Paris: France and Germany plan to resolve the crisis at Airbus on equal terms in response to concerns in Germany that restructuring at the troubled plane-maker could harm its interests.

Airbus is currently struggling with damaging production delays to its A380 superjumbo program, which is critical to its bid to catch up with rival Boeing, and is about to embark on a reorganisation that has raised the possibility of job cuts and site closures.

German interests are represented by automaker DaimlerChrysler, which owns 22.5 per cent of EADS and wants to reduce its holding to 15 per cent. The French state holds 15 per cent of the shares in EADS. The French media group Lagardere owns 15 per cent but plans to sell half the stake.
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