The cuts at Siemens AG would include 3,300 employees in Germany and would constitute about 2.3% of the company's global workforce, according to published reports. The cuts are being made as part of the firm's Vision 2020 initiative, launched in May 2014 as part of a broader corporate reorganization.
The company has already reduced the number of divisions from 16 to nine, and it has also eliminated its "Sector" organization level. Siemens also separated its Siemens Healthcare business into an independently managed business, with Bernd Montag tapped to lead the unit as CEO last month.
The reorganization has enabled Siemens to streamline its operations and remove entire "intermediate" levels, and as a result "certain tasks and functions will be completely eliminated," the company said in a statement. The cuts will complete the company's reorganization, Siemens said.
Siemens believes the reorganization will save it more than 1 billion euros ($1.13 billion U.S.); of the savings, the company plans to plow approximately 400 million euros ($453 million) into sales operations, 400 million euros ($453 million) into R&D, and 300 million euros ($340 million) into fixed assets.
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