Siemens slashes 16,750 jobs to cut costs

Chief Executive Peter Loescher said Siemens needed to be faster, more efficient and have a leaner administration if it planned to maintain pace alongside its top rivals. The company said 16,750 jobs will be cut as part of a giant restructuring plan.

Siemens said the cuts would include 12,600 administrative jobs as well as another 4,150 positions involving restructuring projects at its various units.

"The speed at which business is changing worldwide has increased considerably, and we're orienting Siemens accordingly," CEO Peter Löscher said in a statement.

"This takes on special urgency when one considers the economic downturn," he said.

The Munich-based maker of products ranging from light bulbs and medical equipment to high-speed trains and power turbines said the cuts are part of a previous plan to cut general and administrative costs to "a competitive level."

The company wants to cut annual costs by 1.2 billion euros, or roughly $1.9 billion, by 2010.

Siemens shares have fallen almost 35 percent in 2008, while major U.S. rival General Electric has lost 27.4 percent and Dutch competitor Philips has lost 28.8 percent, according to Reuters data.