German Redundancies

Fighting the Siemens Job Axe

siemens protesters_2_dpa
Siemens employees protest against job cuts in March this year in front of a Siemens factory in Bavaria. The sign reads "We are fighting for our division." Siemens announced to kill 2,00 jobs in Germany.
  • Why it matters

    Why it matters

    Siemens might slash fewer German jobs than originally planned, which would slow the engineering firm’s process of increasing profitability.

  • Facts

    Facts

    • Siemens wants to cut about 2,000 German jobs at its process solutions and large drives divisions which suffer from low commodity prices.
    • Around 1,000 German jobs will disappear abroad; a total of about 2,500 jobs worldwide will be affected.
    • CEO Joe Kaeser has been reorganizing Germany’s largest industrial group since 2013 to increase profitability and boost growth.
  • Audio

    Audio

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Germany’s biggest industrial firm last month announced it would cut 2,000 jobs in Germany at its businesses which make electrical motors and automation systems, but that number might not be as high as planned.

“There are always certain concessions in negotiations,” a source with knowledge of the industry told Handelsblatt.

One option, according to insiders, is that Siemens will spread out the job cuts over a longer period of time, or let fewer people go than initially announced.

In the past, the company had planned to eliminate 1,700 posts in its energy unit in Germany, but in the end only cut 1,100 jobs.

Since Joe Kaeser became Siemens’ chief executive in August 2013, he has been reorganizing the group which makes everything from trains to gas turbines to power generators, in an effort to boost profitability and growth. Faced with low profit margins in some businesses, he has announced job cuts totaling 15,000 worldwide and divestments and acquisitions to keep up competition with rivals including General Electric and Swiss-based ABB.

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