Munich, Germany (4E) – Siemens AG announced Sunday that it will cut 15,000 jobs from its global operations by late 2014 as tries to reduce costs, including 5,000 positions in its home country Germany.
The engineering and technology giant seeks to remove any redundancies from its work force of 370,000, and it plans to reduce costs on wage bill over the next year through attrition. The company’s campaign, known as “Siemens 2014″, aims to create more than 6bn euros ($8.1bn) in savings.
In July, Joe Kaeser was named as the company’s chief executive, replacing Peter Loescher, who was ousted.
The German firm said the move will end speculation about the extent of the job cuts, which were initially signalled by Mr. Loescher before his removal.
Talks are still ongoing between executives and the influential German unions over the planned job cuts at home, according to a spokesman for the company. German jobs that will be affected by the move would include the 2,000 positions in the industry division, 1,400 in infrastructure and cities, 200 in the corporate division, and 1,400 in energy, the spokesman said.
Following the announcement, Siemens reported a 43 percent rise in fiscal third quarter net profit to 1.1bn euros, primarily because of gains from the spin-off of lighting firm Osram.