Siemens plans 7,400 job cuts to contain costs

In an attempt to reduce costs, Siemens AG is planning to cut approximately 7,400 jobs worldwide, according to a Bloomberg report.

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The plan has not been publicly announced yet, but two people familiar with the matter spoke to Bloomberg anonymously.

The job cuts would affect approximately 2 percent of Siemens’ global workforce, and 3,300 of the job cuts are estimated to affect the company’s German operations, according to the report. Siemens is headquartered in Munich, Germany, and is Europe’s biggest engineering company.

JP Morgan analyst Andreas Willi told Bloomberg the job reductions “are mostly white collar employees with higher per head salaries and indirect costs,” with associated costs including computers and office space.

Earlier this week, Cerner completed its acquisition of Siemens’ health technology division for $1.3 billion.

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