YEREVAN, September 30. /ARKA/. Siemens has announced it will axe 15,000 jobs as part of a plan to sharpen its challenge to rival engineering giants General Electric and ABB.
The company does not plan any redundancies from its 370,000-strong work force, however, and will rely on attrition to reduce its wage bill over the next year.
Siemens announced that a third of the cuts will be made to its German operations. It said wanted to end speculation about the scale of the job losses, which were signalled by former chief executive Peter Loescher before he was ousted in July. The company employs 13,000 in Britain.
Executives are still in negotiations with the powerful German unions over the domestic cuts, a spokesman said. So far they have agreed 2,000 will go from Siemens industrial unit and 1,400 from its energy and infrastructure business.
Mr Loescher left Siemens after he issued a second profits warning in two months. His replacement, former chief financial officer Joe Kaeser, insisted the company does not require radical restructuring but admitted it has lost ground to more profitable competitors. –0--