Siemens To Announce Job Cuts

Siemens AG plans to cut about 7,400 jobs worldwide as Chief Executive Officer Joe Kaeser tries to reduce costs at Europe’s biggest engineering company, said a person familiar with the matter.

The cuts, representing about 2 percent of Siemens’s global workforce, may be announced as early as this week, two people said, asking not to be identified as the plan is not public yet. Kaeser said last year that Siemens needs to eliminate jobs as he seeks to slash about 1 billion euros ($1.1 billion) in costs by creating a leaner divisional structure and simplifying regional operations. He had said that as many as 11,600 positions could be affected in the overhaul, and that the final headcount loss would be negotiated with labor representatives.

About 3,000 of those jobs will be in Germany, the source said on Thursday.

Siemens, which had been expected to announce as many as 10,000 job cuts on Friday, declined to comment.

The trains-to-turbines group employs 343,000 people worldwide, of whom 115,000 are in Germany.

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