Siemens' Unify to cut staff in half

The layoffs come as the unified communications market shifts toward software and cloud based products

Unify, a joint venture between Siemens and the Gores Group, will cut 50 per cent of its staff and refocus its product roster away from hardware, following a shift in the overall unified communications market toward software and Cloud services.

The company, which is announced the massive restructuring on Monday, and said it would also boost its channel strategy to work better with reseller partners.

Unify, formerly called Siemens Enterprise Communications, will shrink its workforce from 7700 to about 3900 - half of the eliminated jobs will be from Central Europe. The company will also close offices as it consolidates sites.

The company said the reorganization is needed because the unified communications market has undergone "dramatic shifts" away from hardware-based systems and toward software and cloud based products, leading to "pricing pressure."

"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," Dean Douglas, Unify CEO, said in the press release.

Just last week, IDC released the results of its first quarter report on the global video conferencing and telepresence hardware market, where revenue fell 16 per cent year-on-year, and units sold fell 6.2 per cent.

The drop, according to IDC, was attributable in large part to an increase in cloud and software-based options that often are cheaper and simpler to deploy.

The top three vendors in the market - Cisco, Polycom and Huawei - all have had declines in videconferencing revenue in their recent results. Cisco's videoconferencing revenue fell 22.4 percent, Polycom's dropped 8.4 per cent and Huawei's was down 2 per cent.

Juan Carlos Perez covers enterprise communication/collaboration suites, operating systems, browsers and general technology breaking news for The IDG News Service. Follow Juan on Twitter at @JuanCPerezIDG.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cloud computinginternetunified communicationsNetworkingcollaborationsoftwareapplicationssiemensSoftware as a serviceInternet-based applications and servicesTelephony/conferencingUnify

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Juan Carlos Perez

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?