Local media report that BenQ will reduce its staff by 40% at two of its Shanghai branches, BenQ Mobile Shanghai and BenQ Mobile Shanghai Pudong, which were the Representative Office and Mobile Phone Factory for Siemens, respectively.

So far, more than thirty administrative staff at BenQ Mobile Shanghai Pudong have received notices asking them to leave and about 300 employees at the factory are expected to be reduced within this week. There are about 800 staff at BenQ Mobile Shanghai Pudong, most of which were former employees of Siemens.

BenQ acquired Siemens in June 2005 in the hope of making itself into a trans-national mobile phone giant. However, its dream burst as the mobile service has actually become a big burden for it. The reduction of the staff is believed to be a measure that the company has adopted in relieving itself from this burden.