Siemens Sheds 15,000 Jobs As Part Of Cost-Cutting Program Planned To Save €6 Billion ($8.11 Billion)

Siemens AG (NYSE:SI) will be cutting its global workforce by 15,000 positions during its next fiscal year, which begins Tuesday. The Munich-based diversified-machinery company noted in its third-quarter interim report it had 368,000 employees in continuing operations as of June 30, so the reduction in force will be in the area of 4.08 percent.

Siemens is attempting to boost earnings as it tries to differentiate itself from competitors such as the larger, U.S.-based General Electric Co. (NYSE:GE) and the smaller, Switzerland-based ABB Ltd. (NYSE:ABB), according to Bloomberg News. The axing of the jobs is part of a cost-cutting program planned to save €6 billion ($8.11 billion), according to Reuters.

A Siemens representative told Reuters the company and its unions have reached an agreement over about one-half of the job cuts and are still negotiating over the other half. The rep said Siemens wanted to end speculation in the market about the number of jobs to be trimmed. The company plans to attain the reduction in force via either attrition or buyouts, meaning it is not contemplating layoffs.

In U.S. trading Friday, the Siemens share price closed at $121.78, down 15 cents, or 0.12 percent.