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Siemens job cuts include engineering positions

Posted: 10 Jul 2008     Print Version  Bookmark and Share

Keywords:job cuts  engineering positions  restructuring 

After several days of rumours and uncertainties, Siemens has specified the planned job cuts. Against earlier announcements of CEO Peter Loescher, many engineering positions will fall victim to the restructuring project.

In order to improve the margins of the far-flung electronics group, Loescher plans to reduce the complexity of the company with its currently 475.000 employees, spread over more than 100 countries.

In addition to the restructuring Loescher has implemented in January 2008 which reduced the number of business units from eight to three, the company plans to merge its currently 70 regional organisations into 20 so called Clusters; more of 1800 legally independent subsidiaries and activities will be reduced to less than 1000 by 2010.

The measures also include job cuts—worldwide, the company plans to reduce the number of employees by 16.650. Of this number, about 5250 jobs in Germany will be affected, with the largest Siemens locations Erlangen, Munich, Nuremberg and Berlin contributing the highest number of job cuts.

The industry segment will suffer a hard blow. In order to raise the margins, the segment will establish standardised platforms for its mobility division which is part of the industry activities. Besides the creation of the standard platforms, the head count in that business segment will be reduced by 2500 employees worldwide, 1800 of them in engineering and production functions. Most of the job cuts will occur in Europe including Germany.

Electronics Assembly, another unit under scrutiny, will lose 330 employees through process simplifications, 250 of them in Germany.

In the healthcare segment, Siemens plans to cut about 1550 jobs—according to official statements mostly in administration functions. In healthcare, US-based activities will be affected disproportionately high, with 1200 of the 1550 job cuts to be made in the United States, primarily in imaging and IT as well as in the workflow solution divisions

On top of these job cuts, Siemens also plans to reduce the staff it its IT solutions and services business, which over many years was the company's problem child, apparently resistant against all measures to improve its productivity.

- Christoph Hammerschmidt
EE Times Europe

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