Siemens CEO tries to calm furor over job cuts, could affect Alstom deal

Siemens' (SIEGY) CEO Joe Kaeser is in damage control a day after he let it slip an investor conference that the company's current restructuring affects 11,600 positions.

In a letter to employees today, Kaeser said Siemens' overhaul would lead to changes, but calls press reports of such a reduction "wrong or are based on a false interpretation... I did mention the [job] numbers reported, but at the same time emphasized that some positions could be put to work elsewhere."

It's not clear whether the comments might hurt Siemens' chances of winning Alstom's (ALSMY) power assets away from GE, but the headlines can't help his cause in France, particularly after GE's Jeff Immelt promised to create 1,000 new engineering and manufacturing jobs if his company wins the deal.

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Comments (11)
  • CapGoodsAlpha
    , contributor
    Comments (63) | Send Message
    Kaeser being forced to consider a LARGE, DISRUPTIVE deal even as he is desperately seeking to dump non core assets. Cannot be having fun. And reality is he has to cut a LOT more people than GE to make the numbers work.
    30 May 2014, 04:22 PM Reply Like
  • The Average Investor
    , contributor
    Comments (102) | Send Message
    Mr Immelt,


    Please take your extra $4B you offered Olstom off the table. Don't think it will be needed. Take the money and increase the GE quarterly dividends for the next few quarters.


    John Q. Shareholder
    30 May 2014, 04:56 PM Reply Like
  • CapGoodsAlpha
    , contributor
    Comments (63) | Send Message


    1. The deals are not apples to apples. The numbers will change depending upon the details, assets, etc.


    2. Unlike MANY past GE deals the original proposal would have been a home run for GE, hitting a 20% ROIC potentially by year five.


    3. Generally speaking, I have been in the camp of the more dividend recovery and repurchase and the fewer deals the better.


    30 May 2014, 06:51 PM Reply Like
  • Robbsbeach
    , contributor
    Comments (8) | Send Message
    Thanks for the update:


    Siemans cutting workers is another sign that this Market is overvalued and weighted down by CEO's and CFO's that truly need a salary haircut that are unable to see around the corner.


    I'm confident that GE has the right formula to make this merger work for France the US and all the workers involved at both of these Companies.
    30 May 2014, 05:16 PM Reply Like
  • CapGoodsAlpha
    , contributor
    Comments (63) | Send Message
    Siemens is an eyesore. Kaeser does NOT "have to" buy Alstom. My guess is he wants to "lose" this deal even though it makes GE a much stronger global competitor.
    30 May 2014, 06:54 PM Reply Like
  • Rudester
    , contributor
    Comments (3485) | Send Message
    30 May 2014, 07:02 PM Reply Like
  • duhaus
    , contributor
    Comments (320) | Send Message
    Looks like GE's hand in this poker match just got a lot stronger. I would agree with scottb above but I'm sure that lowering the offer would take the break up fee off the table. Stand your ground GE and Mr. Immelt, stare the govt. officials in the eye and say "that's as good as it's gonna get boys". Hopefully their egos will cause them to kill the deal, GE walks away with an easy billion and Alstom and Siemens continue to falter and crash. GE ends up richer and stronger relative to their competition for doing nothing. Now THAT'S a good deal !
    30 May 2014, 09:56 PM Reply Like
  • Zwed
    , contributor
    Comment (1) | Send Message
    As the Peter Principle suggests, it seems that Kaeser has indeed risen to his level of incompetence....
    31 May 2014, 06:03 AM Reply Like
  • Marcelobozo
    , contributor
    Comments (21) | Send Message
    Siemens was brought to this charade by the french government to "encourage" GE to present a better offer; now that the smoke screen is lifting it can be seen that Siemens is no position to offer a better proposal than GE.
    31 May 2014, 06:29 AM Reply Like
  • rrnas
    , contributor
    Comments (4) | Send Message
    Siemens has more trouble coming.


    There is a billion dollar fraud about to break on Siemens work in NYC, USA


    Forgery, kick-backs, other frauds


    Loss to shareholders will exceed one billion tens of millions in legal fees


    If anyone is interested.. inquire at
    31 May 2014, 11:49 AM Reply Like
  • burger guy
    , contributor
    Comments (219) | Send Message
    Not sure I'd want any inside information from someone with an AOL account. :-)
    1 Jun 2014, 05:20 PM Reply Like
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