Siemens to slash 7,400 jobs: report

5th February 2015, Comments 0 comments

German engineering giant Siemens is planning to cut around 7,400 jobs -- perhaps 3,300 in Germany -- as part of on-going mass restructuring plan, Bloomberg reported Thursday.

If applied, those layoffs would represent around 2 percent of Siemens' worldwide workforce of over 300,000 people.

It was not clear if the 7,400 jobs were part of or in addition to the reduction target of 11,600 positions that chief executive Joe Kaeser set in May 2014 when he unveiled an enormous streamlining plan.

According to two sources cited in the report, the job reductions may be announced as early as this week.

The financial committee of Siemens' supervisory board met Wednesday and Thursday to finalise negotiations, the sources said.

Siemens refused to comment on the information.

Kaeser's reorganisation plan seeks to dramatically reduce both the number of divisions and hierarchy levels within the industrial group by 2016 -- restructuring aimed at eliminating $1 billion in operating costs.

The company has said around 7,600 of those cuts would come in divisions it would shut down, and another 4,000 in streamlining continuing operations.

The moves will also see Siemens divesting from less profitable activities like its appliance unit, and refocus on more lucrative sectors like energy and health care.

© 2015 AFP

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