SHARE
COPY LINK

SIEMENS

Siemens ‘set to slash thousands of jobs’

German engineering giant Siemens, which is increasingly feeling the effects of the economic downturn, is to slash "thousands" of jobs, a financial daily reported on Tuesday.

Siemens 'set to slash thousands of jobs'
Photo: DPA

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.

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

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

CLIMATE

‘We’ll continue our protests’: Environmental activists confront Siemens bosses in Munich

Siemens chief executive Joe Kaeser faced environmental protests inside and outside the group's annual shareholder meeting on Wednesday.

'We'll continue our protests': Environmental activists confront Siemens bosses in Munich
Demonstrators in Munich on Wednesday. Photo: DPA

Outraged by the group's sticking to a contract to supply rail equipment to a massive Australian coal mining project, demonstrators were rallying outside the Munich Olympiahalle ahead of the 10:00am kickoff.

A group of around 100 were on the scene from early in the morning, some forming a human chain.

Late Tuesday, Greenpeace had draped a banner from the company's headquarters reading “Bush fires start here”.

“We will continue our protests for as long as Siemens doesn't back down,” said Helena Marschall, a representative of the movement, at a Tuesday press conference.

Marschall herself is slated to speak inside the venue later Wednesday, while the demonstrators plan to urge the company to “abandon coal” at a larger protest in the afternoon.

Kaeser kept activists and observers on tenterhooks for weeks as he decided whether to uphold a contract with India's Adani group related to its Carmichael mine project in Australia.

In the end, he stuck to Siemens' agreement to supply the rail signalling equipment for the massive open-cast mine, not far from the iconic natural landmark of the Great Barrier Reef.

READ ALSO: Outrage in Germany as Siemens back Aussie mine project

'Fulfil contractual obligations'

Groups like Extinction Rebellion and Fridays for Future have homed in on the shareholder meeting as an opportunity to renew the pressure on Siemens.

“What's more important: a small financial loss in the short term, or the disastrous consequences such a project will have for generations?” Marschall said.

She and other environmentalists have been invited to speak inside the cordon by a group of Siemens shareholders.

In mid-January, CEO Kaeser met leading German Fridays for Future activist Luisa Neubauer after protests across the country against Siemens.

But he later said in a statement: “We must fulfil our contractual obligations” relating to the 18-million-euro ($22 million) deal.

Protesters at the meeting. Photo: DPA

“Only being a credible partner whose word counts also ensures that we can remain an effective partner for a greener future,” Kaeser insisted.

Nevertheless, the company plans to create a “Sustainability Committee” with powers to block environmentally questionable projects.

Siemens says it backs the 2015 Paris Agreement and aims to become carbon-neutral by 2030.

27 mn tonnes of coal

The open-cut Carmichael mine is set to become operational next year and produce up to 27 million tonnes of coal annually.

Adani spent years trying to secure private finance for the coal mine before announcing in 2018 it was self-financing a trimmed-down, $2 billion version of the  project.

Supporters say the mine will bring hundreds of much-needed jobs to rural Queensland in eastern Australia.

But conservationists say the project threatens local vulnerable species and notes that the coal will have to be shipped from a port near the already damaged Great Barrier Reef.

Much of the coal from the mine will be burned in India, a country with some of the world's highest levels of air pollution.

By Ralf Isermann with Tom Barfield in Frankfurt

SHOW COMMENTS