Siemens to cut many more jobs
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.COPENHAGEN - Siemens, Europe's largest electrical and engineering group, announced further heavy cuts in its workforce to take place next year, writes John Eisenhammer.
Heinrich von Pierer, chief executive, said cuts of 16,000 jobs worldwide in the year to September, bringing the workforce below 400,000, would be followed by 'a significant amount' of further cuts next year.
Siemens also has some 13,000 employees in Germany on short-time work. The company hopes to cut costs in management and administration by 20-30 per cent in the next few years.
Predicting flat net profits and no dramatic decline in business volume, Mr von Pierer predicted that Siemens 'will come off better this year than many of its competitors'. While income from operating units will fall below last year's level of DM1.4bn ( pounds 550,000), this will be almost compensated for by higher interest earnings from Siemens' DM22bn financial assets. Pre-tax profits were DM3.2bn in 1992/93 on sales of DM78.5bn.
New orders have fallen 6 per cent to DM53. bn in the first eight months of the year, Mr von Pierer said in Copenhagen yesterday. However, sales were up 2 per cent to DM49bn. Siemens expects worldwide sales of more than DM81bn in 1992/93, 4 per cent more than the previous fiscal year.
While benefiting from strong growth in its power generation and transportation businesses, and to a lesser extent public communications networks, the company is still battling against continuing heavy losses in Siemens-Nixdorf computers.
The loss this year will be similar to the DM513m suffered in 1991/92. Mr von Pierer said cost-cutting efforts at SNI had barely kept pace with tumbling product prices and volatile currency markets, which alone will bring SNI an additional deficit of DM1bn this year. He discounted persistent speculation about pulling out of the disastrous business, describing information technology as a 'very important core area at Siemens'.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments