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Germany's Siemens to slash 15,000 jobs over next year

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A Siemens employee works on a rotor of a gas turbine in a plant in Berlin

The German powerhouse in electronics and electrical engineering, Siemens AG, is planning to axe 15,000 jobs over the next year as the economic crisis in Europe continues to worsen.

“The ongoing and planned workforce adjustments in the context of Siemens 2014 are about 15,000 positions worldwide, of which about 5,000 are in Germany,” the Munich-based company said in a statement on Sunday.

The decision is part of a six-billion-euro (USD 8.1 billion) cost cutting program, the statement said, adding, “We are sticking to the rule: first we speak with the employees, then we go public.”

This came after Europe’s largest engineering company fired its former chief executive, Peter Loescher, due to declining profitability earlier this year.

German Chancellor Angela Merkel has insisted that the country is experiencing good economic performance as well as low unemployment rates.

However, the International Monetary Fund (IMF) has halved its 2013 economic growth forecast for Germany to 0.3 percent.

In addition, a recent report by the German Federal Labor Agency showed the country’s unemployment level rose by 7,000 to 2.943 million in August despite forecasts by economists of a drop of 5,000 claims.

Europe plunged into financial crisis in early 2008. Insolvency now threatens heavily debt-ridden countries such as Greece, Portugal, Italy, Ireland and Spain.

The worsening debt crisis has forced EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered incidents of social unrest and massive protests in many European countries.


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One Response to " Germany's Siemens to slash 15,000 jobs over next year "

  1. Damien says:

    If someone told me this is the world I’m coming into, before I was born, well, I wouldn’t. This is the best we can do? Do we have any scientists researching how can we live better lives? Do we have universities dedicated to find a better system? NO!! Whenever this comes up, they quote someone saying capitalizm is very bad, but it’s the best we got. and that’s it. When someone comes up with an idea that challenges current capitalist order, they call him commie, terrorist or just idiot. Everyone knows this is bad, but noone is allowed to suggest something better. Look up Venus Project, or UBUNTU movement. Is it really impossible sharing the wealth equally? Or those whom are in power are just too powerfull to let us try new things?

    Sooner or later people will be redundant. Technology is replacing human power everyday, and there will be no end to this. It’s very attractive for employer to replace nagging humans with alltime performing machines. Why wouldn’t they, surely they are waiting for the day when all their workers are replaced with machines.

    We need a new system that puts humans first. We are out of the jungle long ago, but still playing with jungle rules. Work everyday all day, be better than the person next to you, or slow death on the streets is waiting for you. Fck this, I wanna go back to being nothing.

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