Manufacturers

Siemens expected to cut more jobs, close offices

The Reuters news agency reported today that Germany-based Siemens Corp. may cut jobs and close offices to stop a profit slide. The profit slide has reportedly been caused because customers have put off ordering engineering equipment due to Europe’s economic crisis.

The news agency said Siemens Chief Executive Peter Loescher may be forced to tackle a gap between a handful of Siemens’ market leading businesses and its underperforming units—wind and solar power as well as the new infrastructure and cities unit—possibly by divestiture.

Just recently, Siemens announced hundreds of layoffs in its wind business at plants in three states in the U.S.

Reuters said the strategy of Siemens boosting growth with energy-saving and infrastructure products has not worked. Some analysts expect him to present managers with a plan of up to $5.2 billion in savings.

Details of the savings plan, which German media said may include thousands of job cuts, will be published when Siemens releases financial results on November 8.

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