Siemens, which employs more than 1,000 staff in the Republic, has primed employees for more belt-tightening with an article in its in-house magazine quoting top managers warning of the need for further cost savings.

"We face weaker demand in many of our important markets," chief financial officer, Mr Heinz-Joachim Neubuerger, was quoted by the staff magazine Siemens Welt as telling a meeting of top Siemens executives. "Our budgets and actions must take account of that," he said.

A Siemens spokesman said on Friday the remarks were made in mid-July at one of a regular series of workshops for managers.

The remarks were viewed as in keeping with the gloomy tone of recent pronouncements from Siemens and its rivals.

Siemens last month reported a fall in group operating profit for the third quarter to June and said incoming orders had fallen some 20 per cent amid weakening demand in key markets including the previously reliable power station business.

The group, which has announced some 34,000 job cuts or 7 per cent of its workforce since last year, has focused particularly on its loss-making telecoms network operations which are struggling with a collapse in demand for telecoms equipment.

"We all know that telecoms network operators have been hit hard economically and are heavily in debt," Siemens Welt quoted chief executive Mr Heinrich von Pierer as telling the meeting. "We have to accept that no fundamental improvement is likely any time soon," he said.