Siemens expected to announce job cuts, closures
Six hundred suits summoned by chief to hear the news
Siemens chief Peter Loescher will outline a plan today on how the industrial tech giant will attempt to save up to €4bn ($5.2bn, £3.2bn), one that is widely expected to include jobs cuts and office closures.
Despite the German economy's strength compared to the rest of Europe - or even arguably most of the world - global hard times have hit the firm anyway because demand for its exports has fallen.
According to German media reports, Loescher will tell a meeting of 600 managers in Berlin today that the company needs a new plan, one that could cause some of them to lose their jobs. At the moment the company is active in communications, automation, software and non-IT fields such as power generation.
Since Loescher took over at the firm in 2007, Siemens has sold assets and re-invested in its growing business and sales were looking good. But as the global economy takes longer and longer to recover, sales are dropping. Loescher said in July that orders had fallen and analysts expect third quarter profits to reflect that.
Siemens has invested heavily during recent times in renewable power, including solar, wind and hydro businesses, hoping that there would be a boom in the tech. But saving the planet is the last thing on a lot of countries' minds as they struggle with rising unemployment and dismal economic outlooks.
Thousands of jobs could be cut at the firm to save the money and offices in 190 countries are also at risk. ®