Siemens to cut thousands of jobs in major overhaul to cut costs

Frankfurt: German industrial equipment and technology supplier Siemens AG says net profit fell 5 per cent in the first three months of the year as the company heads into a major restructuring involving the spinoff of its oil, gas and power generation business.

The company said on Wednesday that net profit was 1.92 billion euros (USD 2.15 billion), down from 2.02 billion a year earlier, when earnings were boosted by 900 million euros by a share transfer.

Revenue rose 4 per cent to 20.93 billion euros.

The news comes after Siemens said late Tuesday it would spin off its division that makes power turbines, while cutting costs at its remaining businesses. The company said it would drop 10,400 jobs but expected to create 20,500 more through growth through 2023, leading to a net increase of 10,000.

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