Siemens cuts 10,000 jobs in loss-making division
19 September 2005, MUNICH - Siemens, the German electronics and home appliances giant, announced plans Monday to cut 10,000 jobs over coming years, with biggest cuts coming in the corporation's loss-making communications division.
19 September 2005
MUNICH - Siemens, the German electronics and home appliances giant, announced plans Monday to cut 10,000 jobs over coming years, with biggest cuts coming in the corporation's loss-making communications division.
More than 2,400 job cuts will occur in Germany over the next two years, in Siemens' business communications department. In all, more than 10,000 jobs will be cut, according to the announcement.
In the SBS computer services department of the communications division, 295 jobs, will be outsourced to India.
The formal announcement had been expected in the wake of Sunday's German general election. Last week, the magazine Der Spiegel said Siemens might shed 10,000 jobs.
The job reductions were an integral part of a total EUR 1.5 billion in cost-cutting measures to be implemented between now and 2007, Siemens said in a statement.
"SBS is to cut its costs worldwide by EUR 1.5 billion by 2007 to pave the way for further healthy growth," the statement said.
"Along with making substantial cuts in asset and process costs, SBS must reduce overcapacities. This makes the phase-out of 2,400 jobs in Germany over the next two years unavoidable," Siemens said.
"Talks with employee representatives in this regard have been initiated," it added.
A third loss-making division, logistics and assembly systems, is being dismantled with effect from October 1, with the various activities spun off or transferred to other parts of the Siemens group.
Subject: German news