Feeds

Siemens siphons off 17,000 jobs

Battening down the hatches

High performance access to file storage

German engineering group Siemens is to lay off 17,000 workers from its 400,000 workforce, including 6,450 jobs in Germany alone, as part of an effort to save €1.2 billion.

Trade union IG Metall had anticipated only 10,000 jobs as part of a broad revamp of the company's operations. The world economy and oil prices are adding to the pressure to act, CEO Peter Loescher told Bild newspaper. "We have to batten down the hatches," he said.

Executives in the middle and upper management will be mostly affected by the job cuts, as Siemens had already had cut thousands of production jobs. In Germany alone, 1,330 jobs may be lost in Erlangen, 900 in Munich, 600 in Nuremberg and 340 in Berlin. The mobility traffic unit will also be affected, according to Die Welt.

The German cuts would be spread over two years. Compulsory redundancies are the very last resort, Siemens said.

Loescher, who took the helm about a year ago, has already squeezed nine operating units into three - energy, industry and health care. Many jobs at Siemens these days are ICT-related. In February Siemens said it would cut 6,800 jobs in Siemens Enterprise Communications, a maker of corporate phone networks.

In related news, Philips is thinking of closing down its LCD factories in Bruges (Belgium) and Dreux (France) and moving its entire LCD production to Eastern Europe.

The Belgian trade union BBTK says it has detailed plans of the pending reorganisation. However, Philips says that at this moment it is only a study. In Bruges, should such a rejig go ahead, 150 to 500 jobs could be affected.

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.