Brushing aside a report by monthly magazine Manager Magazin, Siemens said, details of its Visions 2020+ strategy are still being worked out.
German engineering giant Siemens has trashed a report by Manager Magazin, a monthly magazine, which had said it could cut 20,000 jobs as part of its Vision 2020+ strategy. Siemens said, the report was “completely unfounded”.
“We do not follow the reasoning behind the figures named in the magazine article. No statements of this kind were made,” said Siemens while adding that details of the new strategy were still being hammered out.
On Thursday, Manager Magazin had reported that Siemens aims to reap the benefits of cost savings by reducing costs in its finance, legal, administrative departments, and shared services division citing comments made by Siemens’ CEO Joe Kaeser to investors at a roadshow at the beginning of this month.
Manager Magazin’s report comes in the wake of Siemens unveiling its new strategy earlier this month wherein it aims to combine the operations of its five industrial divisions into three operating companies in its bid to simplify its trains to turbines operations and make the conglomerate leaner.
According to Siemens its new strategy is expected to lift the annual growth rate and profits margins of its industrial business by 2 percentage points over the medium term; it is also expected to boost its basic earnings per share at a faster rate. Further, the functions at its corporate headquarters would also become leaner as a result of tasks being outsourced. It however did not provide details of job losses.
“The newly formed Operating Companies are currently working on the detailed planning,” said Siemens while adding there were no plans for a company-wide cost-cutting program initiated by its headquarters.