Siemens likely to lay off jobs, plans to save 4 bn euros

Germany based Siemens is likely to lay off jobs and close some of its offices to stop profits sliding as customers put off ordering engineering equipment because of Europe's economic crisis.

According to a news posted on Reuters, the company's chief executive Peter Loescher's growth strategy of boosting energy saving and infrastructure products has not worked out well and is likely to come up with a plan to save upto 4 bn euros in savings.

Loescher, the first company outsider to take the helm in Siemen's 160-year history, says that the strategy will take some time to work out and recover well. Loescher took office in 2007 when the company was embroiled in a bribery scandal, shed some assets and invested in growth areas. Last year, he said annual sales would rise to 100 billion euros in a few years, up from about 76 billion in 2010.

The company reported a big drop in orders in July and may also shut down some of its offices in 190 countries where Siemens operates to focus on the few that make the most profits. Details of the savings plan, which German media said may include thousands of job cuts, will be published when Siemens releases financial results on November 8.