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Siemens 'set to slash thousands of jobs'

The Local · 21 Aug 2012, 14:13

Published: 21 Aug 2012 10:17 GMT+02:00
Updated: 21 Aug 2012 14:13 GMT+02:00

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A company spokesman declined to comment on the Börsen Zeitung story when contacted by AFP, but said that Siemens was scheduled to hold its traditional annual management conference in October.

Last month, Siemens chief executive Peter Löscher said the company was drawing up a programme to cut costs, boost productivity and efficiency.

While the programme would not primarily be implemented by reducing the headcount, job cuts could not be ruled out completely, Löscher said at the time.

At the end of July, Siemens warned that it would be harder to achieve its annual profit targets, as the gloomy global economic mood weighs on orders, especially in the field of renewable energy.

It was the second time Siemens had been forced to revise down its targets this year.

The Siemens general works council has expressed bafflement at the report, with one spokesman saying, "I don't know anything about that." A Siemens spokesman refused to comment on the story.

The company's proposed efficiency plan is set to be released in October.

In January, the company announced that its net profits dropped around €300 million to €1.46 billion on the same period last year.

Story continues below…

Siemens was hit hard by the debt crisis in the eurozone, with orders down five percent on last year. But thanks to a large reserve of commissions, the company was able to increase overall turnover by two percent.

“Even though we’re expecting a recovery in the second half of the year, we have to work hard to reach our targets,” Löscher said at the time.

AFP/DAPD/The Local/bk

The Local (news@thelocal.de)

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Your comments about this article

10:38 August 21, 2012 by IchBinKönig
After years of following closely to his own political philosophies, reality has finally set in for the EU and Germany. Thanks, smart2012
11:11 August 21, 2012 by MrNosey
And anyone who can understand that post wins a Nobel prize in cryptography.
11:30 August 21, 2012 by freechoice
well job losses are part and parcel of greedy capitalist economies.
16:15 August 21, 2012 by schneebeck
@ freechoice

"well job losses are part and parcel of greedy capitalist economies"

Is Germany a "greedy capitalist economy"? Does it need to be even more tempered with "socialism".

Does capitalism ever create jobs?

East Germany wasn't capitalist, should Germany move towards a system more like that?

Which country in this world do you think has the economic system with the most ideal employment prospects?
23:03 August 21, 2012 by Screeper
Exactly right schneebeck.

Unfortunately capitalism is currently the best of a bad bunch of possible systems we have.

Easy to call for the death of capitalism, much much harder to come up with a better-for-all solution..
23:20 August 21, 2012 by smart2012
Thx konig, nothing to comments from my side :)
00:06 August 22, 2012 by Berlin fuer alles
Well put schneebeck and Screeper. You see these anti-capatilist demonstrations and yet none of them have ever proposed a better way. The only thing I would like to see done is to make the top bankers who commit corporate crimes and create hardship be made to pay for their crimes. The legal system needs to come up with a way of making these people more answerable for their negligence in handling the economy.
01:50 August 22, 2012 by schneebeck
@ Berlin für alles #7

I would like to see that done too.
11:55 August 22, 2012 by IchBinKönig
'Thx konig, nothing to comments from my side :) '

clever insight isn't it? now multiply that x daily. and we have your output
12:50 August 22, 2012 by aceroni
1.46 billions in profits and they are cutting jobs? Those profits should be taxed at 90% and given to unemployment agencies!
13:10 August 22, 2012 by Omufu
"Democracy and capitalism are the worst systems in the world... except for all the others."

Sorry, can't remember where that quote comes from. Definitely has some merit though.
16:14 August 25, 2012 by sally#
The operation of giant companies is not only related to economy but also closely related to social stability because they have thousands of employees. They afford a livelihood to a large number of families. When these giant companies lose profits, it means that thousands of people will be facing the threat of unemployment. Like the auto parts maker Schaeffler Group said in a statement in 2009 "Due to lost sales, the group has to achieve annual labour cost savings of €250 million in Germany.If we were to reach this goal through layoffs alone, it would correspond to roughly 4,500 jobs." The same to Siemens. Hope it will be better,or thousands of people will become unemployed.
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