The new CEO of Siemens (NYSE: SI) is not a very nice fellow. Depending on which press account is accurate, he is gutting the telecom equipment part his company by cutting between 3,800 and 6,000 jobs. Either way, that is a lot of people out of work.
Revenue at the unit has slowed as it has at related firms like Alcatel-Lucent (NYSE: ALU) and Nortel (NYSE: NT). Siemens has said on more than one occasion that it will do whatever is necessary to hit its 2008 growth and profit targets.
GE (NYSE GE) might take a lesson here. Over the last year, Siemens shares are up 20%. GE’s are slightly down. The US company’s healthcare unit posted flat revenue and operating profit in 2007. The company’s industrial business did not do much better. Together, these two operations were over $33 billion of GE’s revenue.
Wall St. has expected more from GE. It has made the case that growth in emerging markets will improve the company’s financial picture. But, GE has some lower hanging fruit. It needs to cut costs at its under-performing units.
Douglas A. McIntyre
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Orare you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
