Siemens plans to cut jobs in its industrial division.
In a presentation published on its website, the company said 500 jobs would be cut at its Munich headquarters, while a further 500 positions would be lost by reducing mechanics factories in Germany from four to two.
The closure of a factory in Pakistan would result in 200 job losses and another 200 positions would be moved from Germany to the Czech Republic. In addition 1,700 sales positions would be lost.
Siemens, which is Europe's largest engineering and electronics company, is facing growing profit losses and is targeting 1.1 billion euros in productivity gains in its industrial division by the end of 2014, unit head Siegfried Russworm said.
At the end of 2012 the group announced some 1,100 job cuts in Germany in its energy division.
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@Gulam Rasool "Kuldeep sharma": "@G. Din surely then you are not from Engineering/Technological background. am i wrong?" I am sorry to say you are indeed wrong. I am mostly involved in heavy engineering. I was also overawed by this hype for a long time until I had personal exposure to "German engineering" in its home country and was hugely disappointed. Germans could lay claim to excellence in engineering in the past, but not any more after the war. Just after independence, India invited three countries to build steel plants; Russia built Bhillai, UK built Durgapur and Germany built Rourkela. Out of those three, Bhillai was the most successful, Durgapur reasonably so but Rourkela was a dud. What is more, when asked to help their plant run, Germans excused themselves saying Indians were not capable enough to run that plant. Of course we made it run eventually with the help of Russians.
@Harry: Dear Harry, Perhaps my maths are getting rusty, but I counted 5800 jobs. In Pakistan they did say 200 jobs, but if you count the allied industries who will need to lay off staff the number grows. When I studied economics, disinvestment, or investment, grew by a factor of 7, so let us say about 1400 jobs. If every person has 5 dependents the figure grows to 7,000 people who will face an uncertain future if not hunger and misery. If you take the real figure of 5800 it really means that 203,000 people, somewhere in the world, are in trouble. Hardly insignificant.
German engineering is undoubtedly the finest in the world. However, the Germans are facing economic problems the whole Western world is facing, and the problems are getting worse. It basically started with the very doubtful Freudien economics, which got its start with the Regan/Thatcher regimes. I think the basic words were: “let each country do what it is good at”. In other words transfer labour intensive projects, such as engineering to certain low income countries . China is a prime example of low income labour and has become the world’s manufacturing centre. Another example is Australia. Most of its manufacturing has gone off shore and it is just a large land mass with giant holes in the ground due to iron ore/coal extraction, and large farming project to produce cattle, sheep and wheat. In spite of newspapers flattering the exploits of Baroness Thatcher, Britain is an economic disaster as is most of Europe. Also, one only has to look at many Asian countries, and the sub-continent. Travelling around India and Pakistan is depressing. For example, a small minority of Indians, and their industries, are doing very well, but the majority are not. The infrastructure is dreadful, the rivers are not just polluted, they are filthy, with sewage and roads leaving much to be desired. Getting back to Western problems, the Western bankers do not appear able to run banks without going broke, creating very dodgy financial assets or stealing from their depositors, and firms such as Siemens do not care, because they can go offshore without any worry, or care, about the people they make redundant. The only reaction we get from Governments is a ringing of hands, buying new, expensive military equipment, and starting wars which go on forever as a means of distracting us, and their peace negotiating techniques are zilch. I have a bad feeling that countries such as Pakistan will lose more and more jobs as the world economy becomes worse and worse. I say this because I do not see any politicians or so-called leaders on the world stage, who have the ability, moral fibre, or wish, to solve the very evident economic, and other problems, which are plain for any intelligent person to see.
200 jobs? This is a insignificant loss. I am sure there are better stories out there to talk about.
@G. Din surely then you are not from Engineering/Technological background. am i wrong?
Gulam Rasool"Kuldeep sharma" New Delhi
Apparently, much-hyped "German Engineering" is being seen by many for what it is -just hype and nothing more!
Welcome siemens from pakistan to bangladesh