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Siemens Industry Division plans 3,000 job cuts to meet savings goal

Siemens industry division will cut about 3,000 jobs as part of the company’s 6 billion-euro savings program to counter falling demand, according to a Bloomberg report.

The division, which employs more than 100,000 people globally, is targeting 1.1 billion euros in increased productivity by the end of 2014.

Chief Executive Officer Peter Loescher said that the company has already realised reductions in the “high hundreds of millions” of euros.

Profitability at Siemens last year dropped back to the levels when Loescher started in 2007, prompting a new program to cut costs in November after the CEO acknowledged he had been too slow to react to falling demand amid the global economic slowdown.

A quarter of the cuts will come through savings this year in procurement. The industry sector contributed 29 percent of the total 1.7 billion-euro profit generated by Siemens’ four divisions in the first fiscal quarter.

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