Siemens says it wants to axe 16,750 jobs from its 400,000 workforce. It says it will cut 6,350 jobs from its industrial division, 2,800 jobs at its healthcare business and 3,950 jobs at its energy business. 12,600 of the jobs to be cut are in administration. It is hoped the cuts will save Euros 1.2bn in 2010.

The planned level of cuts may well be more of a negotiating figure than an actual cut because negotiations with the unions have not begun.

The German engineering union IG Metall said it would contest the cuts, pointing out that Siemens is in good shape financially and its order books are good.

5,250 of the job cuts will come out of the 136,000 workforce which Siemens employs in Germany, mainly at its sites in Berlin, Nuremberg, Munich and Erlangen.

Siemens boss Peter Loescher says the cuts are necessary in the interests of efficiency, and in view of the impending expected economic downturn. Siemens wants to reduce the 1,800 separate legal entities in its business to less than 1,000, and reduce its 70 regional companies to 20.

Management and workers constituting Siemens' 'Economic Committee' have been closeted in meetings since Monday to discuss details of the proposed cuts.