Siemens plans to slash over 7,000 jobs amid restructuring efforts

German industrial group Siemens have announced its plan to slash a total of 7,800 jobs around the world, in order to complete a broad-ranging restructuring. The said figure accounts for around 2 percent of its entire workforce.

Although the company has not made it clear which divisions and where the cuts will come, approximately 3,300 of those lost jobs will come from Germany, where the company has 115,000 employees.

Siemens noted that the cuts (removing some layers of the management structure) would enable the company to save approximately 1 billion Euros or $1.14 billion, and those savings would be reinvested for growth. The company expects to realize productivity gains before the start of 2017.

“Our Vision 2020 concept will enable us to get our company back on a sustainable growth path and close the profitability gap to our competitors,” explained Chief Executive Joe Kaeser.

Founded by Werner von Siemens on October 1847, Siemens is a German multinational conglomerate company with headquarters in Munich and Berlin. It is Europe’s largest engineering company, with 19 divisions and 4 principal sectors that include Energy, Industry, Healthcare, and Infrastructure & Cities, and these sectors represent the company’s core activities. Siemens is a renowned maker of medical diagnostics equipment and its medical health-care division, which generates about 12 percent of the company’s total sales, is its second-most profitable unit, after the industrial automation division.

According to their latest annual report, Siemens, including all its subsidiaries, employ an estimated 343,000 people around the world and has a reported global revenue of approximately 71.9 billion Euros in 2014. Siemens also has a research and development division with approximately 16,000 employees worldwide, a majority of whom are based in Austria, China, Croatia, India, Mexico, Switzerland, Denmark, France, Slovakia, Sweden, the United Kingdom and the United States. As of September 2011, Siemens held over 53,000 patents.

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