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Layoffs Start at Siemens

Expected layoffs at Siemens Healthcare in Malvern, Pa., have started, a company spokesperson confirms to Health Data Management.

Siemens' corporate parent, Germany-based Siemens AG, announced last month it would cut 16,750 jobs worldwide, including 2,800 from its health care unit.

The job reductions include about 350 employees in Malvern who work in the company's health care information technology unit, which is less than 10% of its I.T. workforce. Affected employees were notified on Tuesday and will leave their positions in mid-September, according to the spokesperson.

Some employees will be offered positions elsewhere in Siemens. The remaining will receive severance, counseling, and career and job placement services.

Siemens will not discuss the affect of job reductions for specific functional areas, such as research and development or work on specific I.T. applications. However, the reductions will not impair customer service, according to the spokesperson. "Part of the transformation effort across Siemens is to have more employees in customer focused roles, of which service is obviously one."

The job reductions are part of a substantial reorganization to reposition Siemens AG during a global economic downturn and save $1.8 billion by 2010. The company also is battling corruption charges stemming from the awarding of contracts in several business units.

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