Siemens CEO May Find 20,000 Job Cuts Aren't Enough for Rebound
By Jennifer Sondag
quote.bloomberg.com
Munich, April 25 (Bloomberg) -- Siemens AG Chief Executive Officer Heinrich von Pierer announced 20,000 job cuts last year to stem mounting losses at the telecommunications units he built.
It probably wasn't enough. Von Pierer, 61, is set to disclose a fourth straight quarterly loss at the phone networks division when Siemens posts fiscal second-quarter earnings today, analysts said. He may also say another 5,000 jobs will eliminated.
Siemens, which employs 484,000 people, more than General Motors Co. or General Electric Co., has to trim expenses as orders at the telecommunications units, the growth engines of the 154- year-old company in the late 1990s, extend their slide.
``Siemens's biggest problem is that they built up the business during an overheated market and now the whole company is suffering,'' said Boris Boehm, who helps manage $5.8 billion at Nordinvest, including Siemens shares. ``I expect more job cuts.'' |
