Siemens job cuts affect up to 16,750 world-wide
22 July 2008
As a result of a slowing economy the need for boosting profits and reducing costs is becoming increasingly important if companies are to maintain a competitive edge. Siemens has announced that in an attempt to drive profits and remain prominent in an ever-growing market, it will cut costs by €1.2 billion by 2010. These savings will be achieved by reducing expenditure for IT infrastructure and for consultants, in addition to personnel reductions.
Over 30% of the job cuts will occur in Germany, predominantly in Berlin, Erlangen, Munich and Nuremberg, the divisions that employ the most staff. The impact of the job cuts is unknown and the cost of redundancy packages has been undisclosed. Siemens is beginning conversations with staff as quickly as possible offering options such as early retirement, avoiding complete termination. As soon as the staff cuts are made the competition for customers and the acceleration of profits can begin.