Siemens has announced that it will shed 2 per cent of its global workforce, with its power and healthcare units set to experience most of the losses.

Both units were pinpointed for the disappointing results announced by the company in January and appear to be a major target for the re-organisation strategy.
Joe Kaeser of Siemens

“With our business concept Vision 2020, we want to bring the company back to sustainable growth and close the profitability gap between us and our competitors,” said Siemens CEO Joe Kaeser.

Kaeser said last year he seeks to slash about $1.1bn in costs by creating a leaner divisional structure and simplifying regional operations.

Janina Kugel, a board member and labour director at the German engineering giant, 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”.

About 3,300 of the jobs will be cut at Siemens’s German operations, the Munich-based company said in a statement today.