To simplify the functional structure, the German engineering company, Siemens will go on an efficiency drive which could result in as many as 20,000 administrative jobs being eliminated.
Siemens that currently employs a workforce of nearly 380,000 worldwide is looking to cut costs as part of its bigger plan, Vision 2020 strategy.
As part of the ‘Vision 2020’ plan that aims to simplify the sprawling structure of the company, headquarters functions in areas like personnel, finance or the legal department could get targeted. However, the plan wouldn’t affect manufacturing jobs, according to the report.
Reportedly, Siemens CEO Joe Kaeser has made a few remarks at several investor meetings and has shared that his goal is to increase efficiency by 20 percent in key administrative roles, and reap savings of as much as 20 percent in the fields of information technology and shared services. Those savings are expected to lift the margin by 2 percentage points, in line with the Vision 2020 target.
As part of the overhaul, Siemens further plans to reduce the number of industrial units from five to three to make them more independent and better able to respond quickly to market demands.
The German-based engineering company is also working on a partnership for its ailing gas-turbine business, including a possible transaction with Chinese involvement.