Siemens to cut 16,750 jobs

As Siemens continues its restructuring, it announced plans to cut 16,750 jobs to reduce costs by $1.9 billion by 2010.


Munich, Germany – In efforts to become faster and more flexible, Siemens AG continued its restructuring with a July 8 announcement to eliminate 12,600 jobs, "primarily in administration-related functions." An additional 4,150 jobs will be affected by restructuring projects for a total of 16,750 positions, about 4% of a 400,000 workforce. Sale of its Segment Industrie Montage Services (SIMS) business also is expected.

“The speed at which business is changing worldwide has increased considerably, and we’re orienting Siemens accordingly. Against the backdrop of a slowing economy, we have to become more efficient,” says Siemens president and CEO, Peter Löscher.uickly in order to make the cuts in a way that will be as socially responsible as possible. In this connection, we intend to consider the full range of instruments at our disposal – for example, transfer companies and part-time preretirement schemes. Only as a last resort will we terminate employment contracts for operational reasons,” emphasized Siemens’ chief personnel officer Siegfried Russwurm. 
"In November 2007, Siemens announced its intention to reduce sales, general and administrative (SG&A) costs to a competitive level. Against the backdrop of an impending global economic downturn, plans call for reducing costs in absolute terms by€1.2 billion [$1.9 billion] by 2010. [2007 fiscal year revenue was  €72.4 billion.] Some of these reductions will be achieved by cutting expenditures for IT infrastructure and consultants. Savings in personnel are also part of the program to reduce SG&A costs now that the company hasconsiderably streamlined its top management level. The Managing Board has been reduced from eleven members to eight and the CEO principle introduced at the levels below. Substantial synergies are also said to be generated internally following the formation on January 1, 2008 of three new Sectors –Energy, Industry and Healthcare – from the company’s previous eight groups. Siemens is bundling a large number of the administrative tasks of its roughly 70 Regional Companies into 20 Regional clusters. By 2010, the number of Siemens’ legally separate entities will have been reduced from approximately 1,800 to fewer than 1,000," the company said. 
Siemens provides additional details on the July 8 ; the count includes about 1,800 fewer jobs in engineering and production, primarily in Europe, the company says. Siemens describes itself as "global powerhouse in electronics and electrical engineering, operating in the industrial, energy and healthcare sectors," which includes factory autmation, process controls, and system integration.
EDN provides information about the
Control Engineering noted

additional restructuring details outlined by Siemens at Hannover Fair


– Edited by Mark T. Hoske , editor in chief
Control Engineering News Desk
Register here and scroll down to select your choice of eNewsletters free .

No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Safety for 18 years, warehouse maintenance tips, Ethernet and the IIoT, GAMS 2016 recap
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Safety at every angle, Big Data's impact on operations, bridging the skills gap
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role of plant safety and offers advice on best practices.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me