Siemens plans to cut jobs, close offices

According toReuters, the German firm may be radically re-thinking its workforce and considering closing offices to try and balance the books in the face of sliding profit margins.

The recession and fragile state of the European economy has placed a number of firms in sticky situations -- and Siemens hasn't escaped. As customers delay ordering engineering equipment, the company has been dealt sluggish growth in the fiscal fourth quarter.

Savings are now necessary, according to Chief Executive Peter Loescher. Previously, the company implemented a growth-boosting strategy -- manufacturing energy-saving and infrastructure products to try and rejuvenate the balance sheet. However, this hasn't worked -- and industry analysts expect managers at Siemens to presented with a recovery plan of up to 4 billion euros ($5.2 billion) in savings.

As part of the savings plan, Loescher is expected to announce the cuts in a managerial meeting taking place in Berlin today. The exec may also shut offices in some of the 190 countries the company operates in, in order to focus on more lucrative country markets.

Loescher has faced pressure from all corners after taking office in 2007 amid a company-wide bribery scandal. As the global economy takes time to recover and Siemens faced a sharp drop in orders in July, radical measures may need to be enforced. In 2011, the executive predicted that the company's total sales would increase from 76 billion in 2010 to 100 billion in the next few years.

At the end of June, Siemens accounted for 410,000 employees, 129,000 based in Germany.