German engineering giant Siemens plans to cut 7,800 jobs worldwide as part of an ongoing restructuring plan aimed at saving US$1.15 billion. Currently, the company employs more than 300,000 staff worldwide.
“In a drive to streamline administrative and overhead functions, about 7,800 jobs are to be cut worldwide, including some 3,300 in Germany,” the company said.
CEO Joe Kaeser unveiled a mass streamlining plan in May 2014 aimed at dramatically reducing both the number of divisions and hierarchy levels within the industrial group by 2016. “The savings achieved will be invested in innovation, productivity and growth initiatives, a considerable part of which will be in Germany,” the company said in a statement.
Janina Kugel, a board member and labour director, said the company wanted to start talks with employee representatives about the cuts in Germany as soon as possible and “search constructively for socially responsible solutions”.
Last month, it was reported that Siemens, said that net profit fell by 25 percent to US$1.2 billion in the first three months. Press reports in recent days had indicated a similar figure for the job losses.