EMCC European Monitoring Centre on Change

Siemens

Company/Organisation:
Siemens

Geographic Location

Country: World

Company

Sector: Manufacturing
Manufacture of computer, electronic and optical products
26 - Manufacture of computer, electronic and optical products
Number Employed: 360000

Employment Effects

Announcement Date: 29-05-2014
Planned Job Reductions min: 11600
Type of Restructuring: Internal restructuring
Foreseen End Date: 31-12-2016

Additional Information

The chief executive of Siemens, the German electronics and electrical engineering company, has announced plans to cut up to 11,600 jobs globally. With this plan called "Vision 2020", the group seeks to save 1 billion euro per year by 2016. It will change its organization to create 9 core divisions directly linked to the board instead of the current four sections. The aim is to create a more reactive company and to cut about 7,600 positions of employees working in sector coordination and another 4,000 people carrying out regional cluster analysis "that is not necessary anymore", the CEO said.

The group employs 360,000 employees worldwide and expects to buy part of the French group Alstom, which is already the target of an offer from the US group General Electric. The group made the commitment to create 1,000 positions in France if it buys Alstom. At the same time the CEO said some job cuts will result from compulsory dismissals. This announcement has angered the German union IG Metall, which is not accepting any compulsory redundancies  and does not accept the commitment to create 1,000 jobs in France, if Siemens buys Alstom.