Siemens prepares to slash its workforce

GERMAN ELECTRONICS OUTFIT, Siemens, will apparently slash its workforce by a whopping 17,200 employees as it continues its ‘restructuring’.

Siemens, which is headquartered in Munich, currently employs approx. 400,000 people worldwide, but trimming the fat means that the 17,200 mainly white-collared, middle management workers will now be looking elsewhere for cushy overpaid jobs. Some 6,400 jobs will be slashed in Germany alone, according to anonymous sources who spoke to the New Yoik Times.

In a move Siemens’ new chief exec, Peter Löscher, hopes will bring spiraling costs under some sort of control, the mass lay-offs are supposed to streamline company operations enough to deal with a possible global recession.

Siemen’s workers aren’t the only ones who will be feeling the pinch. The company has apparently also ruthlessly cut the number of firms which manage its business abroad from 70 to just 20, and has narrowed its business channels into just three main divisions: industry, energy and health care.

Last week in London, Löscher is said to have told reporters, “With our new setup, clear responsibilities worldwide and more efficient processes, we’ve laid the basis for reaching our goal”.

The CEO reckons his actions will result in 1.2 billion euros worth of savings for the company by 2010, a move sorely needed after Siemens shares lost over two thirds of their value in the space of a year.

According to the NY Times mystery source, Siemens won’t go public with the announcement until at least July 7^th when the Siemens workers’ council meets with management to agree on the lay-off terms.

Something tells us that meeting might now be brought forward a bit. µ

L’Inqs
New York Times

Siemens