Europe's largest engineering business group Siemens is reported to be axing more than 850 jobs in its software division at its Austrian subsidiary by the end of September.
Siemens Austria's software division manages or creates more than 40 per cent of the world's 3D data and US military branches and contractors use its software as its 2D diagramming tools are said to provide superior visual images in the early stages of product development process.
The Berlin and Munich-based industrial giant has about 1,700 employees working at the Austrian unit's software development division. The latest job cuts will be in addition to the 223 people having been axed from in the same division last year.
The division's works committee head Ataollah Samadani confirmed the forthcoming job cuts by saying yesterday that according to the information the committee had received, Siemens is planning to cut a large number of employees in its software development sector in Austria.
Samadani said at present, talks are going on between management and personnel representatives and the company said that it would look at the socially responsibility first and dismissals are the last resort.
Siemens' IT business has been hit by the global recession, and last year, employee's union in Germany were able to fend off large lay-offs. A company spokesperson in Munich said that the company has no plans currently to lay off any worker in Germany.
The company however is negotiating with the unions to implement short-time work for the existing employees in Austria's other business segments since Siemens Austria is the parent company's largest overseas unit employing nearly 8,000 workers.
Siemens Austria is a leading engineering and plant building company for the iron and steel industry as well as for the flat-product-rolling sector of the aluminum industry.