In 2014 Siemens AG (ADR) (NYSE:SI) aims to lay off more than 15,000 jobs in its native country Germany, according to the plan of the company $8.1 billion or 6 billion euro cost cutting and restructuring program.
According to the company spokesman announced to Sunday that the company and its Union have so far reached a deal over regarding half of the job to lie off and an agreement on the additional half will follow. The company has announce the cutting of jobs in order to stop rumors in the market regarding the number of jobs that are about to be laid off by the company, the spokesman added.
The statement comes after two months the dismissal of Peter Loescher Chief Executive of the company who design the savings plan at the end of last year. The Europe’s biggest engineering firm has step forward to this move in order to reduce its operating expenses, and to close the gap with more profitable competitors like Switzerland based ABB Ltd (ADR) (NYSE:ABB) and U.S.-based General Electric Company (NYSE:GE).
The German Company, which deal in wide variety of products including gas turbines to hearing aids to gas turbines, has not yet terminated any of its staff member in the country, as well as the company has declared it will not aim to make forced redundancies, relying in its place on voluntary and attrition severance deals.
The company is likely to end its existing financial year on Monday with approximately 370,000 staff, the same as in 2012 financial year. The company has suggested in its plan that it will lay off 1,400 jobs from the company’s energy and infrastructure business unit and roughly 2,000 jobs will be lay off from its industrial unit, according to company official statement.
In 2013 the German firm has been going through some uproar, and in its restructuring program the company has announced new chief executive Joe Kaeser and new chief financial officer Ralf Thomas.
The layoff came following the company statement that it said this summer the company wouldn’t meet profit goals for the year, so the company is considering some restructuring in the company. While an anonymous reports quoted an unidentified spokesman for the company declared that a one-third of the jobs will be layoff in Germany and 10,000 from it’s out of the country operations. Siemens AG (ADR) (NYSE:SI) shares plunged -1.67% to $4.11 in last trading session.