Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
On 28 January, the engineering company Siemens announced plans to cut up to 2,000 jobs in Germany in response to a decline in orders.
In 2009, the market for motors dropped by 42% and it is not expected to recover before 2014, the company said. The works council and the trade union IG Metall opposed the plans saying that Siemens has made large profit in the first quarter of the business year and that the forecasts were positive.
The plan will mainly affect the two plants that manufacture low voltage motors in Bad Neustadt and Erlangen, Bavaria. Bad Neustadt currently employs 2,148 staff. By 2012, the manufacturing unit will be closed and relocated to Mohelnice, Czech Republic. 840 jobs will be cut. The technology and innovation department in Bad Neustadt - employing currently 1,200 people - will remain and be enlarged, management said. 300 jobs will be cut in the manufacturing plant in Erlangen. Finally, Siemens announced the reduction of 850 industrial service jobs at various locations in Germany.
Siemens currently employs 62,000 people in its industry division in Germany. That is about half of its total workforce in the country. 6,000 workers are on short time work.
Eurofound (2010), Siemens, Internal restructuring in Germany, factsheet number 70135, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/70135.