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Siemens to cut 2,000 German IT jobs

Industrial giant Siemens said on Wednesday that it would cut 2,000 jobs in its German IT solutions and services (SIS) unit, part of a broader programme initially unveiled in March.

Siemens to cut 2,000 German IT jobs
Siemens employees protesting against cuts in July. Photo: DPA

The company and worker representatives have reached agreement on how to implement the decision “in a socially responsible manner,” a statement said.

Offers would be made “for the voluntary termination of employment, ranging from partial early retirement to employment termination agreements,” it added. The group also planned to propose internal reassignments and continuing education.

The decision is part of a broad restructuring of the SIS division announced on March 18 that included the elimination of 4,200 jobs worldwide. Siemens said then that it would restructure the unit around two poles of activity – business information technology solutions and IT outsourcing.

At the end of its fiscal year to September 2009, “the IT business had about 35,000 employees worldwide, of whom slightly less than 10,000 were in Germany,” the statement said.

SIS sales have fallen for several years and analysts say its technical staff are better paid than at rivals such as IBM, Hewlett Packard and Accenture.

Siemens said “the adjustment measures became necessary after revenue in SIS’s personnel-intensive business declined to €4.7 billion ($6.2 billion) in the fiscal year 2009,” an annual decrease of more than 12 percent.

“In the third quarter (to June) of the current fiscal year 2010 alone, SIS reported a loss of €81 million on revenue of €1.1 billion,” the firm said.

Siemens has already spent around €500 million ($660 million) to restructure other divisions and has slashed 23,000 jobs. At the end of last year, its workforce totalled 405,000 worldwide.

The group’s vast operations extend from the manufacture of light bulbs and washing machines to medical imaging equipment, wind turbines, nuclear reactors and high-speed trains.

On June 30, Siemens said it had resumed full-time work schedules at German sites owing to a pick-up in demand.

A day earlier it reported that quarterly sales for the entire group climbed by four percent to €19.2 billion and that new orders had jumped by 22 percent to €20.9 billion, their first increase since the last quarter of 2008.

Siemens shares were down 1.39 percent to €76.71 in late Frankfurt trading on Wednesday, while the DAX index of leading stocks was 0.36 percent higher overall.

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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