Siemens ‘set to slash thousands of jobs’

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

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

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