• Germany's news in English
 
app_header_v3

Siemens light bulb unit to cut 4,700 jobs

The Local · 30 Nov 2012, 14:14

Published: 30 Nov 2012 14:14 GMT+01:00

As part of the cost-cutting programme, the group will sell factories, which will reduce the 39,000-strong workforce by about 4,700 jobs, Osram said in a statement.

Due to fundamental changes in the lighting sector, Osram had already announced in January 2012 that it would adjust its capacities and its workforce "both nationally and internationally by the end of fiscal 2014," the statement said.

As part of those measures, some 1,900 jobs have already been axed worldwide this year, including 300 in Germany.

Plants producing products at the end of their product life cycle or smaller plants with lower sales would face closure, the company explained.

Osram is grappling with a shift in the industry from traditional light bulbs to light-emitting diodes (LED), a technology where Asian rivals have built up capacity and driven down prices.

Osram said it was building up capacities "in future-oriented business areas" and created 200 jobs here in Germany alone last year.

It plans to invest "a low three-digit million euro figure over the coming years in its LED assembly plant in the Chinese province of Jiangsu," Osram said.

"In the final completion stage, 1,700 employees will manufacture products for key segments of the Chinese market and entire Asian region. The region will already account for around half of the global general lighting market in five years' time," the statement said.

Osram quoted a study on the lighting sector by McKinsey, which estimated the total market to grow by roughly 5 percent per year between 2011 and 2016, and the market volume for LED is expected to rise to €37 billion by 2016 from €9 billion last year.

Story continues below…

Over the same period, the market volume of traditional products would decrease by 15 percent, McKinsey estimated.

On Wednesday, parent company Siemens said it would spin off 80.5 percent of its lighting unit Osram with a view to proceeding with the long-planned stock market listing of the subsidiary later.

AFP/mbw

The Local (news@thelocal.de)

Your comments about this article

19:47 November 30, 2012 by raandy
Not positive for the ever increasing unemployment stats.

You go to the Bau Mart for a light bulb theirs is 7,99 and the others is 2,99 for about the same life span.
19:09 December 1, 2012 by marimay
It is time to boycott products from companies moving their production to China.
Today's headlines
Analysis
How Merkel reacts to crises better than other leaders
Photo: DPA

It is of critical importance for a country how a leader chooses to react to an act of terrorism. Chancellor Angela Merkel’s cool head sets an example for the rest of the country.

Turkey demands Germany extradite Gülen supporters
Fethullah Gülen. Photo: DPA

Ankara called on Germany on Thursday to extradite supporters of Islamic cleric Fethullah Gülen, whom the Turkish government accuses of plotting a failed coup earlier this month.

German police raid 'hotbed of radicalization'
Police entering one of the residences. Photo: DPA

A mosque and eight residences were searched.

Germany boasts Europe's best value beaches
This beach just got named Europe's cheapest. Do you know where it is? Photo: DPA

Forget Mallorca or the Costa del Sol - the best beach bargains can be found in Germany. But where?

After rampages, Merkel says again: Wir schaffen das
Photo: DPA

Speaking for the first time after a Syrian refugee blew himself up in southern Germany, Chancellor Angela Merkel reaffirmed her commitment to helping refugees on Thursday.

The Local List
Germany's five most mind-boggling conspiracy theories
What's the point of this mysterious tower at Tempelhof Airport? Photo: DPA.

Think that wacky paranoid types only exist in the USA? Here’s a few crazy German conspiracies to prove you wrong.

Munich shooting
Gunman's friend arrested for 'planning school attack'
File photo: DPA

Police found chemicals and instructions for making explosives, as well as evacuation plans of his school in the youth's possession.

Bremen mall evacuated due to escaped psychiatric patient
Police outside the mall. Photo: DPA

The man had reportedly made worrying statements relating to Isis and last week's shooting in Munich.

German ambassador to Turkey left out in cold
Recep Tayyip Erdogan. Photo: DPA

The Turkish government has been giving German ambassador Martin Erdmann the cold shoulder for weeks, after German parliamentarians passed a bill recognizing the Armenian genocide.

Ansbach suicide bomber was interviewed by Bulgarian TV
Photo: DPA

A Syrian who blew himself up outside a German music festival at the weekend was interviewed twice by Bulgarian television while living there in 2013, footage showed on Wednesday.

Sponsored Article
Why you should attend an international job fair
DPA
Gallery
IN PICTURES: How Munich responded to shooting spree
Sponsored Article
Avoid hidden fees when sending money overseas
Lifestyle
10 rookie errors all Brits make when they arrive in Germany
National
Bavaria train attack: Were police right to shoot to kill?
Sponsored Article
Why Swiss hospitality graduates are in demand
National
How to get German citizenship (or just stay forever)
Sponsored Article
Five things Americans should know about voting abroad
Technology
Brexit will turn Berlin into 'Europe’s startup capital'
Travel
Six soothing day trips to escape the bustle of Berlin
International
'Germany needs to make UK come to its senses'
Features
Six odd things Germans do in the summer
Sponsored Article
Why expats choose international health insurance
Travel
These 10 little-known German towns are a must see
Features
How two gay dads cut through German red tape to start a family
Sponsored Article
Health insurance for expats in Germany: a quick guide
National
Five things to know about guns in Germany
Sponsored Article
Avoid hidden fees when sending money overseas
Culture
10 things you need to know before attending a German wedding
National
Eight weird habits you'll pick up living in Germany
Lifestyle
Six reasons 'super-cool' Berlin isn't all it's cracked up to be
Sponsored Article
Why Swiss hospitality graduates are in demand
Society
Only one country likes getting naked on the beach more than Germany
Lifestyle
23 ridiculously fascinating things you never knew about Berlin
Sponsored Article
Why you should attend an international job fair
Culture
8 German words that perfectly sum up your 20s
Lifestyle
Can't make it past the door at Berlin's most famous club? Help is at hand
Business & Money
Why Frankfurt could steal London's crown as Europe's finance capital
Features
6 surprising things I learned about Germany while editing The Local
Culture
Five sure-fire ways to impress Germans with your manners
11,042
jobs available
Toytown Germany
Germany's English-speaking crowd