Europe’s biggest engineering conglomerate, Siemens, plans to slash 4,200 jobs at its information technology unit – nearly half of those in Germany.
That would set it up for a possible spinoff as a separate company.
Siemens’ Chief Financial Officer Joe Kaeser would not be pinned down when asked about the future of the unit, which is known as Solutions and Services (SIS).
Talking to reporters he stressed investment over cuts: “What we’ve been talking about today, it’s not just about cutting jobs – but also about major investment. We’re going to spend over 500 million euros between now and 2012. We are going to re-focus the IT section, in the areas where Siemens does best, that is energy and environmental technology, technology for the health sector and industry.”
Siemens has been undergoing huge restructuring to recover from the effects of the global economic crisis including nearly 2,000 jobs cuts in Germany in its industry section.
The conglomerate is considered a bellwether of Germany’s economy for the wide-ranging products it makes.