Siemens-Nixdorf Announces Plans to Cut 3,000 Jobs
FRANKFURT, Germany (AP) _ The German computer maker Siemens-Nixdorf Information Systems AG said Tuesday it plans to eliminate up to 3,000 jobs by the end of 1992 to cut costs.
The company, which currently employs about 52,000 people, said the job cuts would reduce operating expenses by $351 million.
The cuts are part of consolidation of the company, formed last October with the merger of the information and computer division of Siemens AG and the financially ailing Nixdorf Computer AG, officials said.
The layoffs are not expected to be implemented until late 1992, said company spokesman Jochen Doering, pending negotiations with labor unions and other workers’ groups.
The company’s supervisory board voted Tuesday to reduce the workforce as a cost-cutting measure. In a statement released after the meeting, the company described the move as an ″optimizing and rationalization″ of the resources of the two companies.
More than 1,000 jobs have already been cut at its operations in Spain, France and Great Britain, the statement said.
Most of Tuesday’s announced cuts will come within Germany, the company said.
Siemens-Nixdorf officials have said the merged company is expected to post a loss in the first full year of operation, instead of attaining its previous goal of breaking even for the year.
Just prior to the merger, Nixdorf Computer laid off about 4,000 of its 29,000 workers.