Siemens confirms 16,750 jobs to go

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　　Siemens confirms 16,750 jobs to go
        　　    Siemens, Europe's biggest technology group, said yesterday it would cut 16,750 jobs worldwide in a drive to reduce
        　　    costs and raise profits in the face of the global economic slowdown.
        　　    Peter Loescher, chief executive, announced that the German group would shed 12,600 mainly administrative jobs to
        　　    trim its costs by €1.2bn (￡952m) by 2010.
        　　    Siemens is also taking out a further 4,150 posts through restructuring its transport division where profits have
        　　    been depressed through extraordinary charges on rail contracts. The global workforce of 435,000 will be reduced by
        　　    4.2% amid the impact of the economic slowdown.
        　　    Loescher said: "The speed at which business is changing worldwide has increased considerably and we're orienting
        　　    Siemens accordingly. Against the backdrop of a slowing economy, we have to become more efficient, urgently."
        　　    Siemens has already begun talks with union leaders over where the dismissals will fall, with Germany losing 5,250
        　　    posts in total.
        　　    It said 3,650 jobs would be cut elsewhere in the EU but said the impact in individual countries, including Britain,
        　　    would emerge later. A further 5,450 posts will diminish from outside Europe.
        　　    Loescher refused to estimate the cost of redundancy packages but analysts have said this could be as high as €800m.
        　　    Compulsory redundancies will be a last resort, Siegfried Russwurm, chief personnel officer, said.
        　　    Union leaders reacted angrily, saying the planned cuts were "incomprehensible" and "unacceptable" given Siemens'
        　　    multibillion earnings and over-flowing order books. One said the job cuts were "completely exaggerated".
        　　    The Austrian chief executive was setting out the latest stage of his year-long campaign to shake up the group,
        　　    streamlining management layers and cutting the main board from 11 to 8 members.
        　　    His plans are part of a strategy to restore the group's credibility after he issued a profits warning in April,
        　　    pointing to €860m extraordinary charges because of problems in fulfilling key contracts.
        　　    Siemens shares, which have slumped 35% this year, were down about 1% in advance of third quarter results due at the
        　　    end of the month.