Siemens wants to cut 16,750 jobs globally, of which 12,600 are mainly in administration, to help Europe's biggest engineering group reach a savings target of 1.2 billion euros ($1.9 billion) by 2010 and boost profit margin levels, Siemens said.

Chief Executive Peter Loescher, who has extensively restructured Siemens since taking charge a year ago, said Siemens needed to become faster and more efficient to catch up with the competition. "This takes on special urgency when one considers the economic downturn," he added.Negotiations with labour representatives about the planned job reductions will begin quickly, Loescher said.

Siemens has said it wants to cut selling, general and administrative costs by 1.2 billion euros or about 10 percent within two years, partly by shrinking the number of separate legal entities that make up the conglomerate, which employs about 400,000 people.

The rationalisation comes as Siemens struggles to put an end to a worldwide investigation into a corruption and bribery scandal and as it hopes to regain investor confidence after a profit warning in March that sent its shares tumbling.

Loescher said on Tuesday Siemens would cut 6,350 jobs at its industry unit, 3,950 at energy, and 2,800 at healthcare. (Editing by Will Waterman)

By: DocMemory
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