Tags: Siemens | job | cuts | profitability

Siemens Said to Prepare 1,400 Job Cuts Amid Profitability Push

Tuesday, 19 Mar 2013 09:51 AM

Siemens AG is preparing to eliminate between 1,200 and 1,400 jobs at three sites of its energy and infrastructure businesses to bolster profitability, according to a person familiar with the matter.

Europe’s biggest engineering company is in talks with union representatives about cuts at operations in the German cities of Erlangen, Offenbach and Leipzig, said the person, who asked not to be identified as the plans are not public.

Chief Executive Officer Peter Loescher in October outlined a two-year efficiency plan to simplify processes, eliminate redundant functions and examine units not meeting profit expectations. While he said that redundancies are not the main focus of the plan to reduce costs by 6 billion euros ($7.8 billion) by 2014, the company has identified about 8,000 potential job cuts globally, a person familiar with the plan said at the time. Siemens has about 370,000 employees.

Siemens said in an e-mailed statement today that the company talked yesterday to union representatives about its plans to reduce costs in the next two years. The company didn’t give a figure for potential job cuts.

Loescher, in his second five-year term, has come under pressure to boost profitability and refocus Siemens after some deals that he supervised soured, and a push into more environmentally friendly energy generation led to spiraling costs. The company said in December that the energy business will contribute savings of 3.2 billion euros to the cost cutting plan.

Further details about the planned cuts will be presented to employee representatives in the coming weeks, the person said today.

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Siemens AG is preparing to eliminate between 1,200 and 1,400 jobs at three sites of its energy and infrastructure businesses to bolster profitability, according to a person familiar with the matter.
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Tuesday, 19 Mar 2013 09:51 AM
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