Siemens, the Munich-based conglomerate, is planning to cut up to 1,000 jobs in its healthcare division.
Planned cuts could amount to as much as 8 percent of workers at the diagnostics subsidiary, according to Michael Sen, chief financial officer of healthcare operations. Sen also said another 400 jobs will be lost as Siemens stops making linear accelerators.
Order intake and sales in the healthcare division failed to grow in the most recent quarter, and profitability fell at the diagnostics business.
Diagnostics accounted for 29 percent of Siemens’ healthcare sales in fiscal year 2011. It had an operating margin of 6.7 percent in the most recent quarter, down from 14.7 percent in the first quarter of 2010.