Thousands of job losses at Siemens

Europe’s largest engineering company Siemens has announced plans to axe 16,750 jobs from its 400,000 strong workforce, as it looks to improving profit margins and cut costs.

The job losses, which represent nearly 4% of the workforce, are expected to be worldwide with 5,250 jobs expected to go in Germany. Most jobs will be administrative positions said the company.

As a result of the job losses, the company hopes to cut costs by €1.2 billion (£0.95 billion, $1.9 billion) by 2010.

Back in March, the Munich-based engineering group, reported a 68% fall in earnings for the first quarter. Furthermore, since the start of the year, its shares have lost nearly 35% in value.

Peter Loescher, president and chief executive, explained that the company had become more efficient due to the backdrop of a slowing economy.

Siemens, whose products include light bulbs, medical scanners and trains, has been battling with an alleged corruption scandal that involved accepting bribes to win contracts overseas.

Shares in the group fell as much as 3.2% in German trading today.

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