May 30, 2014 / 1:28 AM / 5 years ago

Siemens to eliminate 11,600 positions: Bloomberg

Siemens Chief Executive Joe Kaeser attends a news conference in Berlin May 7, 2014. REUTERS/Thomas Peter

(Reuters) - Siemens AG’s (SIEGn.DE) chief executive said the European giant will cut 11,600 positions as the company reduces costs by about 1 billion euros ($1.36 billion), Bloomberg reported on Friday.

Some 7,600 will be cut through streamlining and the creation of a new divisional structure, and another 4,000 from regional clustering, it reported, citing CEO Joe Kaeser as saying in a webcast conference from New York on Wednesday.

Kaeser said some employees will be assigned other roles, Bloomberg said.

“A certain amount of people do stuff for co-ordinating things, analyzing things,” said Kaeser. “About 20 percent of those we believe can be put to work elsewhere, but not there. They can be taken out of the system because the work goes away.”

Siemens unveiled a long-awaited restructuring earlier this month in a drive to catch up with more profitable competitors.

As part of the overhaul, dubbed “Vision 2020” the company said it was taking out a layer of management by cutting back to nine core divisions, publicly listing its hearing aid business and separating out management of its healthcare business.

Reporting by Aashika Jain in Bangalore; Editing by Eric Walsh

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