Siemens said on Tuesday that it had reached an agreement with the representatives of works councils to cut about 1,200 jobs in Germany in an effort to reduce the workforce at the enterprise communications unit.
The company said in a statement that about 300 employees will be offered part-time pre-retirement contracts, while others will be able to join a transfer company financed by Siemens.
The transfer company, due to start in July this year, will operate for about two years and is aimed at finding jobs for employees within the company.
Siemens made the first announcement on Feb. 26 saying it would cut as many as 6,800 jobs at the unit after failing to find a buyer for the division for about two years.
The firm had promised to eliminate 3,800 jobs directly and 3,000 were to be cut by selling factories or setting up partnerships.
Siemens chief financial officer said the firm was seeking a deal with a strategic buyer or a financial investor who had some operational experience in the market.
Siemens contacted several companies including Alcatel-Lucent SA, Nortel Networks Corp. and a buyout firm Cerberus Partners LP regarding a sale, although it hasn't been successful and there have been speculations that Avaya Inc. already pulled out of talks.