Siemens AG will report a whopping $1,260m loss for the year to September 30, according to the magazine Capital. The loss would be the company’s largest since 1988, and would compare with a group net profit of $1,280m in the 1992-93 fiscal year. The magazine says the enormous loss is down to high interest costs, and operating losses in many of the company’s 266 divisions with Siemens Nixdorf Informationssysteme AG one of the big loss contributors. A recent research report by Goldman Sachs & Co suggested that Siemens should cut its workforce by 15% or about 55,000 employees, Capital said. Management now plans to cut costs by over $4,000m a year between now and 1998 where it had been planning reductions of between $2,000m and $2,500m. And finance director Karl Hermann Baumann recently wrote to division directors saying that the company faces a threatening results situation, the magazine says. Siemens plans to respond to the report.
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