The biggest IT company in the UK has been ordered to cut 3,500 jobs by the government as part the Government’s shake-down of the IT industry.
Siemens has been under pressure from customers to make cuts, following the Government announcement that it will allow it to sell off its IT business.
However, Siemens CEO Tom Verster has announced that he will not take any such drastic action.
He has announced plans to increase staff numbers to about 5,000 people by 2020, and he is aiming to reduce the number of staff working in London and the Midlands by another 15,000 by 2020.
Verster has also said that the UK will remain the biggest IT market in the world for some time.
Siemons employs around 6,500 people in the United Kingdom and about 3,400 in the US.
The company has faced tough times in recent years, and has been hit by a series of cyber-attacks.
In the last three years, the company has reported a loss of around £1bn ($1.1bn).
Its biggest losses came in 2017, when it reported a profit of just over £3bn.
However, that was partly due to the huge financial crisis that the IT sector was forced to contend with.
Earlier this year, Siemers’ shares were trading at just under £40 a share.
Last month, the firm posted its first quarterly profit in over a decade, and the company’s stock rose by a healthy 7 per cent.
On Monday, Siemans CEO Verster said that Siemens was taking measures to increase its workforce to help meet its targets.
“We will continue to invest and develop our workforce to ensure we are able to deliver on our commitments to customers, shareholders and the workforce,” Verster told a news conference.
“I believe we have a strong balance sheet, which means we have no debt to service and that we have sufficient cash on hand to support our operations for years to come.”
The move is the latest step in a series that will see the UK’s largest IT companies, such as Microsoft, HP and IBM, move to reduce their workforce.
More to come.