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© siemens (illustration purpose only) Business | May 11, 2017

Siemens cuts jobs in Germany

Siemens plans to cut 1'700 jobs in Germany over the next few years and transfer another 1'000 positions as part of an efficiency drive.
In order to implement the planned measures, talks with the relevant employee representatives are to begin at once. About 1'000 jobs are to be transferred to external service providers in Germany or to other units within the company. Around 9'000 new employees are to be hired in Germany alone within the same period. Efforts will be made to retrain as many of the affected employees as possible for open positions, the company said.

Enterprise IT

This transformation will require the company to focus on its own activities in order, for example, to create capacities for new tasks such as cyber security and the expansion of platforms for data analysis. The measures are expected to impact a total of about 1'350 jobs in Germany over the next three years. Around 700 of these jobs will be transferred to external suppliers. "The realignment of our enterprise IT will undoubtedly play a key role for Siemens in its transformation into a digital industrial company. We'll drive this topic resolutely and thus increase our flexibility, too," said Michael Sen, the Siemens Managing Board member responsible for Siemens' enterprise IT unit.

Digital Factory

A variety of measures are planned at the Digital Factory Division, including a project to consolidate existing storage facilities in the Nuremberg, Fürth, Erlangen and Amberg area of Germany in order to create a completely new logistics center in the Amberg region. This center is to be operated by an external service provider and begin operation within the next few years.

"Consolidating our storage facilities for the Digital Factory Division is an important improvement for our customers," said Division CEO Jan Mrosik. "We'll be able to react faster and accommodate customer-specific wishes in a more targeted manner. And we'll eliminate the expensive transfer of goods between existing locations." In addition, capacity adjustments are planned for the Fürth location. Business at the location has been declining for years due, among other things, to customers' longstanding reluctance to invest. All in all, about 600 jobs are expected to be cut at Digital Factory in Germany as a result of these measures. Around 250 more jobs will be transferred.

Mobility

Siemens is planning extensive measures to optimize its cost positions. In this connection, adjustments affecting around 300 jobs at the division's location in Krefeld, Germany, are already required now. "Of course, the greatly increased competitive intensity in the worldwide rail business has consequences for us, too," said Jochen Eichholt, CEO of the Mobility Division. "To survive in this environment, we have to take action now."

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November 14 2017 8:30 PM V8.8.9-2