It has been widely reported by many major media outlets in the last few days that Siemens may be planning to cut its worldwide workforce by as many as 17,000 employees by 2010. These reports -- all based on unnamed sources -- have appeared in the Wall Street Journal, The New York Times, and the Financial Times of London, among others.

Most of those expected to be affected are in administrative "white collar" positions. Reportedly, one-third of the cuts would take place in Germany, one-third elsewhere in Europe, with the remaining outside of the EU.

Among the market forces driving these measures is the need to compete with GE, regarded as a nimbler company that earns twice as much on a per-worker basis. (Note that last week, DOTmed News reported a layoff at GE Healthcare in Wisconsin. Story at https://www.dotmed.com/news/story/6360.)

In November 2007, Siemens posted its first loss in six years, prompting a management consolidation and integration of operations into three areas: energy, industry, and healthcare. No specifics have been reported on the possible healthcare employee impact of the potential downsizing plan.

Siemens, based in Munich, employs more than 400,000 in 190 countries. The company's labor representatives and management will meet Monday, July 7 and confirmation and details may become available at that time. We will keep you posted.