Siemens to cut 16,750 jobs amid downturn

By Nicola Leske

FRANKFURT (Reuters) - German industrial conglomerate Siemens plans to cut around 4 percent of its workforce worldwide as part of an overhaul and as a result of the global economic downturn, Siemens said on Tuesday.

Siemens wants to cut 16,750 jobs globally, of which 12,600 are mainly in administration, to help Europe's biggest engineering group reach a savings target of 1.2 billion euros (953 million pounds) by 2010 and boost profit margin levels, Siemens said.

Chief Executive Peter Loescher, who has extensively restructured Siemens since taking charge a year ago, said Siemens needed to become faster and more efficient to catch up with the competition.

"This takes on special urgency when one considers the economic downturn," he added.

Negotiations with labour representatives about the planned job reductions will begin quickly, Loescher said.

Engineering trade union IG Metall condemned the plans and did not rule out taking measures in protest.

"Siemens is looking good economically, the order books are full ... That makes the planned job cuts neither comprehensible nor acceptable, and they are excessive in extent," said Werner Neugebauer, head of IG Metall in Siemens home state of Bavaria.

Labour representatives planned to resist but would first wait for the outcome of negotiations with management.