Engineering and industrial-technology conglomerate Siemens
announced March 18 it will lay off 4,200 employees in the IT division, in what
some news sources are claiming is preparation for an IT division spinoff. Siemens
said it plans to invest $500 million euros in SIS, its IT solutions and
services business, by 2012.
"The combination of IT outsourcing and specific industry solutions makes SIS
an excellent partner for comprehensive IT consulting and IT management and can
build on the specific industry and software know-how of the Siemens Sectors,
which are world leaders in their businesses," Siemens Chief Financial Officer
Joe Kaeser said in a statement.
Roughly 2,000 of the 4,200 job eliminations to occur between now and 2011 will
take place in Germany.
Siemens employs over 35,000 employees. In 2009, the company completed a
two-year reduction of nearly 17,000 jobs in sales and administration positions,
according
to Reuters.
"We will implement these measures responsibly. The clear focus will make
our IT business fit for the future," Siemens Chief Human Resources Officer
Siegfried Russwurm said in a statement.
Here is how the company explains what will happen during the layoff period:
"In making the job reductions connected with the reorientation of the IT
service provider, Siemens intends to exhaust all possibilities for voluntary
measures and to implement the cutbacks in as socially compatible a way as
possible. Measures will include, for example, the termination of employment
contracts by mutual consent or the non-renewal of temporary contracts. The
required consultations with employee representatives will be initiated
immediately."
It does appear based on company statements that it is preparing to restructure
its IT division for potential changes and a spinoff.
"The demands on IT and software expertise in our strategic businesses are
steadily increasing, and the attractive growth fields of smart grids, product
lifecycle management (PLM) and efficient health care solutions are all strongly
IT-driven," Russwurm said. "The ability to operate customer IT
infrastructures as well is also an excellent add-on and generates substantial
customer value. In the past, we've frequently demonstrated that we vigorously
tackle all necessary measures. Only this approach ensures competitiveness and,
thus, safeguards jobs in the long term."
Siemens plans to spin off SIS as a Siemens subsidiary, according to Dow Jones:
"Siemens' restructuring initiative
lays out plans to operate SIS as a separate IT company from the start of the
next financial year on Oct. 1. SIS will remain a Siemens subsidiary, however,
Chief Financial Officer Joe Kaeser said at a press conference Thursday."
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