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Siemens SIS SDE: Low cost redundancies?

by Galadriel posted on 06.07.2009 07:40 last modified 23.04.2015 20:51

Siemens SIS SDE management is planning to lay off about 25% of its worldwide 5.200 employees. This will not only happen in high cost countries but also in low cost countries like India or Croatia. It is planned that 1.431 employees will lose their jobs. NetLeiwand has obtained the detailed list of jobs cuts planned by country.

Last Monday, June 29th 2009, the CEO of SIS SDE, Mr. Sinha, invited all the 1750 employees of Austria to a meeting in Vienna.

On the one hand he talked about the required trust among each other and the tasks everyone has to undertake worldwide to be successful. On the other hand the dramatically fallen market prices of working hours requires low cost structures. He presented a slide with plans for job cuts in both high and low cost countries.

Planned job cuts by country

Job cuts presented on the SIS SDE employees meeting in Austria 29th of June 2009

Austrian colleagues present at the meeting were rather astonished by these inconsistent messages. Mr. Sinha explained that he doesn't like the actual situation but this doesn't help: The cut of jobs is necessary to secure the workplaces of the remaining 3.800 worldwide. That is much more important. He doesn’t want to bother the Siemens board of directors with this topic next year. To be succesful, we can either achieve higher market prices with innovations or we can be the low cost market leader.

On July 2nd 2009 the 7th round of negotiations between the Austrian works council and the management ended without any result: The management would itself like to select the 632 employees to be fired. The works council rejects this.

Ataollah Samadani, chairman of the Austrian works council announced at the Vienna meeting that the works council will do everythng in its power to stop anyone being made redundant by management in Austria.