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Siemens to cut 17200 jobs

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When I read the news I said “WooW”, the crisis is real, the big ones aren’t doing anything and even with my “woow”, I always knew that things like this would begin happening because a company can’t borrow money always or can’t sell their own stocks if they don’t have them.

Listen to me: We are Done!

At Monday it is very probable to see Siemens stocks down here in Europe and in USA, but I hope the market, in general will plunge up, as we are totally oversold.

The “Sueddeutsche Zeitung” reported Saturday that Siemens was set to shed the jobs without citing any sources. The Wall Street Journal also reported a similar figure, citing a person who was familiar with the matter. We are talking about administratives mainly that will probably loss their jobs.

Siemens did not comment on either report, only to say that it did not comment on market rumours. They did the right thing, because what can make worst a rumour is confirming it before anybody prove guilty or innocent.

Siemens said that of the cuts to the company’s global work force of approximately 435000 staffers, some 6400 could come in Germany, where it employs around 136,000 people. Here from Portugal the main journals are saying that no jobs will be cut in Portuguese Siemens “houses”.

Both papers said the company cited the rough economic conditions worldwide as one reason for the cuts, but Siemens CEO Peter Loescher warned earlier this year that the company faced a bumpy road.

In March, Siemens issued a profit warning saying that weaker-than-expected performance in its major business projects this quarter was going to pull earnings down by approximately $1.41 billion.

The warning was a surprise for the conglomerate, whose diverse products include trams, turbines and telecommunications equipment, given that it had said in January that sales were expected to double the pace of the global economy.

The new figures reported Saturday were on top of the previously disclosed cuts.

Shares of Siemens were down 0.17 percent to close at $111.64 in Frankfurt trading Friday. I wish I shorted it!

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By , Financial Director and Correspondent on Jun 29th, 2008 GMT +2


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