17,000 jobs to go at Siemens worldwide

30 Jun 2008

Siemens AG, which manufactures mobile handsets amongst other products such as medical devices and home appliances, is laying off 17,200 people across its global bases, CEO Peter Loescher has confirmed.

Some 6,450 jobs will be cut in Germany from Siemens 136,000-strong employment base. Overall, this 17,000 job cut will represent a loss of 4pc from Siemens’ total workforce globally.

No details have yet been released on whether staff in Ireland or the UK will be affected by this announcement. A spokesperson from Siemens Ireland said this afternoon that “nothing official” had yet come from headquarters.

Siemens cited cost savings as the reason for reducing staff numbers by 17,000, with an aim to save €1.2bn by 2010, most of which would be in “administration costs”, according to Loescher.

He went on to say the rising price of oil combined with the current world economy had caused Siemens to take a look and decide to “batten down the hatches”.

This news follows the Siemens February 2008 announcement that it would be cutting the workforce at its corporate telecoms division SEN by 6,800, letting 3,800 workers go immediately.

When this happened Irish staff were minimally impacted, with five people affected.

These are not the only storms weathered by the Siemens AG group: the company is currently being investigated for bribery following allegations of slush-funds or kickbacks operating between 2002-2006, reportedly worth about €1.3bn.

By Marie Boran

Pictured:Jim Reid-Anderson, CEO healthcare sector and member of the managing board of Siemens AG