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Siemens set to cut as many as 11,600 positions

Siemens set to cut as many as 11,600 positions
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German conglomerate Siemens has revealed it is looking at getting rid of up to 11,600 positions in its restructuring plan.

Chief executive Joe Kaeser gave specific numbers for the first time when questioned at an investor conference in New York.

He plans to reduce the group to nine core divisions.

That will affect as much as three percent of its workforce, though a company spokesman explained some employees would be assigned other roles.

The spokesman noted the company’s previous savings plan, launched in 2012, had involved 15,000 positions but had resulted in an overall headcount reduction of 4,000.

Siemens has about 360,000 workers worldwide, with around a third of those in Germany.

Unions resisted previous attempts at cuts under Kaeser’s predecessor Peter Loescher, who was pushed out last summer after a series of profit warnings.

The IG Metall union – which represents engineering workers – said the 11,600 number has not yet been discussed with them.

Kaeser, who has vowed to restore a sense of pride at Siemens, will be keen to avoid a showdown over job cuts that might distract from his ambitious corporate overhaul.

with Reuters