Siemens has announced a plan to cut 7,800 job cuts, including 3,300 in Germany, as part of a plan to restructure business and cut costs.
Approximately 2% of its workforce will be cut which is expected to save €1bn in fiscal 2015, which is likely to be invested towards the company’s innovation, productivity and growth initiatives.
The company said it will invest €400m towards sales operations, €400m on research and development and €300m for fixed assets.
With the capital, the company is also trying to bridge the profitability gap with its rivals ABB and GE.
Despite the job cuts the company expects its number of employees around the world to be relatively stable as it hired more than 11,000 in the first four months of its current fiscal year.
Siemens AG CEO Joe Kaeser said: "Our Vision 2020 concept will enable us to get our company back on a sustainable growth path and close the profitability gap to our competitors."
"Our strategic reorientation has enabled us to considerably streamline our organization and remove entire intermediate levels."
"As a result, certain tasks and functions will be completely eliminated."
"We’re going to tackle this challenge together and implement the resulting measures responsibly. This completes the restructuring of our company in line with the new organisational setup of October 1, 2014."