Sunday, September 29, 2013

Siemens to cut 15,000 jobs

Siemens, the Munich based engineering and technology firm, is in the process of cutting 15,000 jobs worldwide 5,000 of these in Germany. The companies industrial sector with the fields automation, propulsion, and services is the most affected in Germany, according to a spokesperson.

Half of these jobs are already gone, but since Siemens is growing in other fields, the total workforce has remained at around 370,000. The other 7,500 jobs will be cut by the end of September of next year. In Germany this will be achieved by partial retirement schemes and gratuities.

The Siemens works committee is not happy that they weren't informed about the total amount of jobs cuts. Head employee representative Adler told the Sueddeutsche, that "the arguments on the issue are not over." 

Siemens has just eight weeks ago switched its CEO. Business economist Peter Löscher had to leave office and he was followed by business economist Joe Kaeser. This not typical for German companies. The successful firms which are specialised in engineering are usually lead by an engineer or a physicist.

Löscher left after the company had to announce a profit warning. Siemens' problems were primarily on the engineering side. It was for example unable to produce trains on time. The conglomerate underestimate the complexity of projects time and time again, according to Sueddeutsche. BMW - lead by the engineer Norbert Reithofer and also based in Munich - could not afford such issues and will start the production of their electrical cars with a completely new carbon fiber body on time.

Some analysts claim that the conglomerate is too large, and should sell several several divisions, but Siemens has been doing that for years. Infineon - lead by an engineer - is a prime example, the former Siemens subsidiary is now successful. Being smaller will not solve the engineering issues.

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