Siemens to spin-off Osram, 4,700 jobs cut.

The company will also sell factories, this to compete with its Asian rivals after being spun off from its parent company Siemens, Reuters reports. Osram said on Friday that the company want to save EUR 1 billion within a three year period, with 50% of the savings coming from procurement, the report continues. The company has, compared to its rivals, been slow to shift to LED from traditional incandescent bulbs, and the rivals has driven down prices by building up capacity. The 106 year old brand is being spun off by Siemens itself, as a part of a renewal of its businesses which includes a EUR 6 billion savings plan. Siemens will give 80.5% of Osram to its shareholders and keep 17%. At this time only two out of the 44 factories (in 16 countries) that Osram operates manufactures LEDs; Regensburg in Germany and Penang in Malaysia. But Osram aim to expand and to build a new Chinese plant to gain ground in the Asian market. The cuts are said to take action by 2014, 4’300 outside Osram’s home market. Factory sales will cover half of that. Osram said the 400 jobs affected in Germany is in Berlin, Munich and Wipperfuerth.