Frankfurt, Germany – Industrial machinery maker Siemens AG said it will cut 7,800 administrative jobs worldwide as part of an effort to streamline the sprawling company and its many businesses. Munich-based Siemens said in a statement that 3,300 of the job losses will be in Germany.
Siemens CEO Joe Kaeser said the cuts were part of an ongoing restructuring whose aim was to “get the company back on a sustainable growth path and close the profitability gap to our competitors.”
Siemens said the cuts would save US$1.14 billion this year alone that the company could put into growth initiatives such as research and development. As a result, it said overall head count would remain roughly the same.
The company also announced plans in 2013 to shed as many as 15,000 jobs over the course of 2014.
Siemens had 341,000 employees at the end of 2014 in more than 200 countries.