Siemens’ layoff picture came into focus today as the German industrial giant announced it is eliminating 16,750 mostly white-collar jobs. The 4% reduction effectively confirms last week’s speculative reports that Siemens would eliminate 17,000 of its 430,000 jobs.
“The speed at which business is changing worldwide has increased considerably, and we’re orienting Siemens accordingly,” President and CEO Peter Löscher said in a prepared statement. “Against the backdrop of a slowing economy, we have to become more efficient.”
That statement echoed remarks Löscher made two weeks ago, when he warned of cuts to help stay competitive in difficult financial times. Siemens’ profits plunged 67% in its second quarter. The €72.4 billion company is scheduled to report third-quarter financial results at the end of this month.
The job cuts will come from across countries and business sectors. On a country basis, Germany will bear the largest share, losing about 5,250 jobs, close to one-third of the total reduction. The biggest cuts will come from Siemens’ four largest sites: Erlangen, Munich, Nuremberg, and Berlin. The rest of Europe will lose 5,150 jobs, and outside of Europe, Siemens is eliminating 6,350 jobs.