German industrial conglomerate Siemens plans to cut around 4% of its workforce. It is part of an effort by Europe’s biggest engineering group to cut costs by about 10%, that is 1.2 billion euros within two years.
Siemens wants to get rid of 16,750 people, 5,250 of those in Germany. That is on top of 4,150 jobs which are being eliminated through the company’s previously announced restructuring programme.
Chief Executive Peter Loescher has extensively restructured and slimmed down Siemens since taking charge a year ago. He said the company needs to become faster and more efficient to catch up with the competition and added: “This takes on special urgency when one considers the economic downturn.”
Siemens is trying to regain investor confidence after a profit warning in March sent its shares tumbling.