MUNICH (Dow Jones) – Siemens AG is in its IT division before job cuts in the thousands. The job cuts will begin this affect the German sites, such as Dow Jones Newswires on Wednesday by a person informed learned. (Photo: Siemens)
In addition, Siemens will provide information on Thursday’s economic committee, "added the person. Currently, the IT division has 35,000 employees worldwide well, almost 9700 of them in Germany.
"Worldwide, are probably more than 1,000 jobs eliminated," said another person familiar with the matter on Wednesday to Dow Jones Newswires. It pointed to the declining sales of the division SIS in the past.
A Siemens spokesman declined to comment on Wednesday on the request of Dow Jones Newswires on a possible job cuts, but confirmed that Siemens will keep its Economic Committee on Thursday about the plans for the realignment of the SIS. The Economic Committee is, however, a pure information panel which has no possibility to reject the plans of management or approve them. In an echo of the meeting of the finance committee will discuss the realignment of the SIS between companies and workers’ representatives, said the spokeswoman.
The Munich DAX group had already indicated in its Annual Report 2009 that the outcome of the SIS in the current fiscal year "could be significantly impacted by restructuring charges.
In the organization of the SIS, there is according to estimates of the true person familiar with the matter potential for improvement, a mere headcount of the division, but could not help. "Siemens has proven in the past in its spin-offs are not always a lucky hand, so are the fears of the staff are now immense," said the person. The daily Handelsblatt had reported in its Wednesday edition also from a downsizing at SIS in the thousands.
Siemens is making good progress on their own assessment of the legal independence of the IT Division SIS. "We are on track for a carve-out of the SIS, was chief financial officer Joe Kaeser said in late January before the meeting.
The Siemens AG plans by 1 July, a legally independent of Siemens IT Solutions and Services. The company saw in the current structure of the IT area is not the necessary flexibility "to withstand the high" price and competitive pressure, "said CEO Peter Löscher in early December when he announced the project.
SIS has implemented last year, 4.7 billion EUR, while merely reached EUR 90 million profit. In terms of sales SIS is still heavily dependent on in-house jobs. EUR 1.1 billion of sales were made in the past fiscal year with Siemens, EUR 3.6 billion came from external clients.
Once separated, the SIS will be fit for the partnership with a competitor or even for an IPO. An IPO in 2012 but was more likely than in the coming year, had most recently CFO Kaeser said in an interview.
Website: www.siemens.com
- By Matthias Karpstein, Dow Jones Newswires
+49 89 55214030, matthias.karpstein @ dowjones.com
DJG / mak / kla / sch
