The headlines were simple enough. Siemens (NYSE: SI), one of the world's largest conglomerates, was laying off almost 17,000 people. Big companies make layoffs all the time. Big deal.
But Siemens really is different. It operates in almost every country in the world. It has large businesses in infrastructure, transportation, electronics, medical devices, and industrial materials. It is, in essence, a snapshot of the global economic system.
The fact that a company with Siemens' resources would have to dump so many poor souls is probably an indication that the recession, which may have been limited to the US and Europe, is starting to grow. Management at the conglomerate wants to hold profit margins for the second half and into 2009. They have clearly determined that revenue will not be driving those results.
Siemens thinks the global economy is in for a rough time. Actions speak loader than words.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
7-09-2008 @ 12:05PM
speculator said...
we are in recession. That is why the stock market will go lower. The economy is going to by weak until the United States takes care of its biggest problem. One billionaire calls our biggest problem the %uFFFDLargest transfer of wealth in the history of mankind%uFFFD. Find out who said it and how we correct it
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7-09-2008 @ 12:49PM
william lindblad said...
Just one of many, and they are all doing the same thing. There are many that think that the world's economies are bottoming out and that a rebound is near term. Although I would like to believe this, there is not too much to support the belief. U.S. exports remain strong, Euro zone ag and Aussie mining, but they are the shining stars and are far outnumbered by the negatives. Inflation is all over, consumer confidence is sinking and fuel issues abound. Under these pressures, investors are becoming wary and stock markets are shrinking.
There are still serious credit issues, both known and imagined, with the perceived promoting caution and fear. This is a difficult environment in which to be optimistic.
7-09-2008 @ 6:54PM
SEN COM Tech said...
As a Siemens employee with a job on the line this is quite sad. Siemens is a wonderful company to work for and the thought of working for anyone else makes me sick to my stomach.
Thank you G.W. Idiot, I mean Bush... for the worst eight years we could have hoped for.
7-10-2008 @ 12:30PM
SIEMENS COM Emp said...
Totally agree with you.
For over 20 yrs, I've worked for SIEMENS and believe that it is a great company to work for. The layoffs have hit many dedicated employees; with fingers crossed, the rest of us are holding on.
7-10-2008 @ 1:42PM
IPB said...
The sad thing is that hard-working people are the ones suffering from the slowdown of the global economic system while the income of those draining the economy via social programs is not affected.
7-11-2008 @ 11:48AM
SadSoccerMom said...
To speculator: it is very interesting to see anyone try to blame this on Bush (who is by no means perfect); his administration has given the US seven years of record low unemployment. Siemens is an international company with worldwide layoffs. This is a global problem and a global economic slowdown. America's main problem right now is the housing and credit crunch (nothing to do with a president). Very little do we hear about Congress and their record low (one-digit) 9% approval rating. All politicians are destroying America; they've gridlocked the country. The sad part: society is so ignorant, misinformed by the media, and undereducated - do you think they'll will figure that out before it is too late?