Business | Telecoms
Siemens AG decides to cut its global work force
Industrial conglomerate Siemens AG said Tuesday it would cut 4.2 per cent of its global work force, mostly administrative-related positions, to streamline its operations in the face of a slowing economy.
- AP
- Published: 16:05 July 8, 2008
Frankfurt: Industrial conglomerate Siemens AG said on Tuesday it would cut 4.2 per cent of its global work force, mostly administrative-related positions, to streamline its operations in the face of a slowing economy.
The Munich-based company said besides 12,600 job cuts, another 4,150 positions would be affected by restructuring projects at its various units. That accounts for more than 4 per cent of the company's worldwide work force of
approximately 400,000 people.
The company said the cuts were in an effort to reduce total costs by $1.8 billion by 2010.
"The speed at which business is changing worldwide has increased considerably, and we're orienting Siemens accordingly," said chief executive Peter Loescher in a statement announcing the cuts, which had first been raised last month.
Siemens said it wanted to make the cuts as socially responsible as possible and was considering transfers to other companies, early retirement options and more in a bid to avoid forced layoffs and dismissals.
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