Siemens To Cut 11,600 Jobs: Reports

(RTTNews) - German conglomerate Siemens AG (SI) plans to eliminate about 11,600 positions as part of its restructuring and an effort to save about 1 billion euros in costs, reports said Friday.

During a webcast on Thursday, CEO Joe Kaeser reportedly said the planned cuts include 7,600 as the company aims to create a leaner divisional structure, and another 4,000 positions will be cut as it simplifies regional operations. Some of the employees will be assigned other roles.

Earlier this month, Siemens announced a corporate overhaul, which will reorganize the company into nine divisions. The company said that the organization will be streamlined by eliminating the Sector level and bundling business into nine divisions instead of the current 16. The healthcare business will also be separately managed in the future.

Siemens expected these measures to increase productivity by about 1 billion euros a year, and to be fully effective by the end of fiscal 2016. According to the firm, the strategic realignment will enable it to focus on growth fields in electrification, automation and digitalization. The company had stated that 'Siemens Vision 2020' will position itself along identified growth fields.

The recent acquisition of Rolls-Royce Energy aero-derivative gas turbine and compressor business for 785 million pounds cash is expected to strengthens the company's position in the growing oil and gas industry as well as in the field of decentralized power generation.

Reports also indicated that the company is negotiating with labor representatives to determine the final number of job reductions.

On Frankfurt's Xetra, Siemens shares are currently trading at 97.68 euros, down 0.12 percent.