The German engineering firm, Siemens is to lay off 2,400 workers at its computer-services division and reduce costs by 1.5 billion euros over the next two years. The head of that unit is also being replaced. In addition, the company will eliminate an unspecified number of jobs at Siemens Communications and break up its loss-making logistics unit.
It is part of a plan to make all its businesses profitable by 2007.
Siemens currently has around 160,000 workers in Germany and a total of around 438,000. It cut 35,000 jobs in the last four years, but has also taken on staff in other areas.
One trade union representative said the latest cuts were: “A panic reaction, with the company making a clean sweep to improve the figures just in the short term. But, it remains to be seen if this is a reasonable solution for the long term.”
Siemens, which makes everything from turbines to trains to lightbulbs, said restructuring costs will weigh on its earnings for this fiscal year, which ends in September, and for next year, but it did not reveal details.