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Munich technology firm Siemens announced yesterday that it would lay off 4,200 workers in its IT division SIS (pictured: Siemens Austria boss Brigitte Ederer).

Siemens lay-offs may hit Austrian workers

Munich technology firm Siemens announced today (Thurs) that it would lay off 4,200 workers in its IT division SIS.

Siemens will lay off 2,000 of its 9,500 IT workers in Germany by autumn 2011. It said the lay-offs would cost it millions of Euros.

SIS has 35,000 employees around the world, including 2,500 in Austria. Siemens' Austrian operation will also be affected by the lay-offs, according to workers’ council chairman Ataollah Samadani.

Siemens Austria spokesman Harald Stockbauer refused to comment, saying interested parties should contact Siemens in Munich.

Media have reported that the lay-offs are part of preparations to make SIS independent of Siemens by this autumn and, eventually, a separate firm.

Workers in Siemens’ Austrian software division threatened to strike earlier this month because of threatened lay-offs.

Samadani said then that "unconfirmed information has it that workers in some areas of SIS be laid off."

He claimed Siemens had neither confirmed nor denied the rumours of impending lay-offs and had yet to put forward a business model ensuring retention of existing jobs.

He added that Siemens Austria might be waiting for instructions from the parent company in Germany before confirming the fate of the 2,500 workers under threat.

A recent workers’ assembly authorised the employees’ union to engage in strike action at its own discretion.

Meanwhile, Siemens’ Austrian boss has been named as the best paid CEO among German companies listed by the country’s stock market index DAX in "crisis year" 2009.

Villach-born Peter Löscher earned more than seven million Euros last year, according to business newspaper Handelsblatt. He took over at Siemens in 2007.

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