Frankfurt/New Delhi: Diversified German conglomerate Siemens AG has said it will reduce headcount by 4,200 people from its IT business worldwide by 2011 as part of reorientation.
In a statement, the company said it would eliminate 4,200 jobs at Siemens IT Solutions and Services (SIS) worldwide by the autumn of 2011. The company currently employs about 35,000 people in its IT business globally.
Siemens Group has a good presence in India, where it provides direct employment to over 17,000 people.
Of the total 4,200, around 2,000 jobs would be axed in Germany, the company said without providing details for the rest of the job cuts.
“As part of the reorientation, plans call for eliminating some 4,200 of about 35,000 jobs worldwide by 2011. Roughly 2,000 of the jobs affected are in Germany,” Siemens said.
Besides, Siemens is also planning to hive off its IT unit into a separate business entity.
While making job cuts, Siemens said it would “exhaust all possibilities for voluntary measures and to implement the cutbacks in as socially compatible a way as possible.
“Measures will include, for example, the termination of employment contracts by mutual consent or the non-renewal of temporary contracts. The required consultations with employee representatives will be initiated immediately,” it added.
Moreover, Siemens said it would invest over €500 million into the SIS by 2012.
Siemens Group currently employs more than 4,00,000 people across the globe in its wide range of operations spanning from energy sector to healthcare and financial sector.