Siemens AG (SI) to Slice More Jobs at Osram, Eyes $1.3B in Savings

November 30, 2012 8:16 AM EST
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Siemens AG (NYSE: SI) will move further into cost savings via the elimination of more jobs. A lot of jobs, to be exact.

According to news out Friday, Siemens will trim its Osram Lighting segment workforce by 4,700 people in an effort to reap €1 billion (about $1.3 billion) in savings. The move comes as Osram reduced positions by 1,900 in 2012, with total job losses amounting to 7,300 positions.

Cost of the move is expected to be in the hundreds of millions, with savings starting to kick in by fiscal 2015.

Earlier in the week, Siemens said it would spin-off the Osram unit, retaining about a 20 percent stake in the company. Siemens is reacting to a lagging demand of traditional light bulbs, with consumer interest geared more toward CFL and LED lighting. Both iterations promise overall cost savings to consumers moving forward . With expectations of vastly longer lives (10,000 hours of run time isn't uncommon for CFLs) and prices falling in-line with traditional lighting, it's a no-brainer for most to make the switch.

Osram is said to employ about 39,000 as of September 30th, according to regulatory filings.

Shares of Siemens are up about 0.7 percent in early trading Friday.

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