Siemens denies reports of huge layoffs

Siemens Automotive Corp., based in Auburn Hills, Mich., denied reports it will have massive layoffs in its automotive electronics operations as a result of a restructuring plan next year. A German union speculated that as many as 2,000 employees would be cut.

According to a report by the Reuters news service on Oct. 22, Guenter Lorenz, a spokesman for the German engineering union IG Metall, said Siemens AG is considering eliminating jobs in the United States as part of a restructuring program. Siemens AG is the Munich, Germany-based parent company of Siemens Automotive.

David Ladd, manager of public relations for Siemens Automotive, said no layoffs are planned as part of a restructuring operation. He did say the company's U.S. operations are undergoing a review as part of the company's recent merger with Mannesmann VDO. He added such reviews are standard practice during mergers and some jobs will be lost because of the elimination of redundant operations.

Ladd said there are about 1,000 Siemens and Mannesmann VDO employees in metro Detroit. Siemens also has plants in Ontario and Ohio. The merger has not received final approval from the Federal Trade Commission. That approval is expected during the fourth quarter this year. The merger has already been approved in Europe.

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