German industrial giant Siemens confirms plans to cut 7,800 jobs worldwide to complete a wide-ranging restructuring. As Sara Hemrajani reports, the news comes despite a recent uptick in German industrial output.
The axe is dropping at Siemens. Europe's biggest engineering company has announced it's slashing 7,800 jobs worldwide. That's about 2 percent of its global workforce. Siemens has been implementing a business overhaul, which would streamline the management structure and speed up decision-making. It says these job cuts should save 1 billion euros. But analysts say the real figures reveal a slightly different picture. Alastair McCaig is from IG. SOUNDBITE: Alastair McCaig, Market Analyst, IG, saying (English): "It is of course worth noting though that at the same time as these job cuts are being announced, the new employment figures that have come in over the last 12 months for this company do total round about 11,000. So it is pretty much a status quo being maintained. If anything the net headcount has actually increased." Siemens manufactures a range of equipment, from trains to turbines. But the company has been struggling to revive profits, even as Germany's industrial output and orders rise. Still, its CEO says he's confident his firm will be able to narrow the gap with rivals like General Electric.