Siemens confirms big cuts but details remain sketchy

Siemens is to embark on a major cost-cutting drive that may involve job cuts, the German electronics company confirmed on Friday.

In a statement, Siemens said that, despite a billion-euro profit for 2012, it was not likely to meet "the ambitious goals it defined for itself" within the framework of its 'One Siemens' strategy. It said it would launch a two-year programme that is intended to cut costs, boost competitiveness and improve the company's organisational structure.

It still remains unclear what precise measures this will entail, as details will only come out on 8 November at Siemens's annual press conference.

"As a leading company, we want to be better than the competitors," Siemens chief Peter Löscher said in a separate statement. "We don't want to bob along somewhere in the broad masses of the middle."

In its statement, Europe's largest electronics and electrical engineering firm said it would stick to its basic structure, which is based on the four sectors of energy, healthcare, industry, and infrastructure and cities.

However, Loescher also said some businesses within those sectors "whose profits haven't met our expectations for a longer time" may fall victim to "specific countermeasures".

The CEO said job cuts were not the starting point for the reorganisation, but may be part of it.