Siemens denies plan for mass job cuts

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In this file photo taken on May 7, 2015 the logo of German engineering giant Siemens is pictured in Muelheim, Germany. Siemens plans to cut 20,000 jobs worldwide, as part of a major reorganization to boost profitability, says the monthly Manager Magazin to be released on August 24, 2018. / AFP

Frankfurt am Main, Germany — German industrial conglomerate Siemens denied Friday a media report that it would cut thousands of jobs as part of a massive restructuring plan.

“The report claiming that 20,000 jobs are to be cut… is completely unfounded”, the firm said in a statement.

Business monthly Manager Magazin’s online edition reported Thursday that Siemens chief executive Joe Kaeser had told an investors’ roadshow this month that 20,000 administrative jobs could become superfluous under the group’s “Vision 2020+” strategy.

“We do not follow the reasoning behind the figures named in the magazine article. No statements of this kind were made,” Siemens responded.

Under the Vision 2020+ scheme, individual businesses within the sprawling Siemens empire — whose products range from gas turbines and trains to industrial robots and medical scanners — will have more freedom to set their own priorities.

The group hopes the plan will help boost revenue and profitability.

“The newly formed Operating Companies are currently working on the detailed planning. There are no plans for a company-wide cost-cutting programme initiated by Siemens headquarters,” Siemens said.

Munich-based Siemens has already weathered outrage this year after announcing it would slash 7,000 jobs at its power and gas division.

German workers successfully battled to save plants in the capital Berlin and in Goerlitz, on the border with Poland.

As well as denying plans for mass layoffs, Siemens said it would add some 10,000 jobs to its Internet of Things unit by 2025.

The group currently employs almost 380,000 people around the world. — AFP