S&P 500
7,226.20
+0.01%
Dow Jones
49,494.60
-0.62%
Nasdaq 100
27,685.40
+0.66%
Russell 2000
2,804.78
-0.02%
FTSE 100
10,364.50
0.00%
Nikkei 225
59,260.50
-0.78%

Industrials

Siemens (SI) Cuts Jobs, A Lesson For GE (GE)

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

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

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

A 70-Year-Old With $1.4 Million Faces a $62,000 RMD That Pushes Him Into a Higher Tax Bracket
Drew Wood |

A 70-Year-Old With $1.4 Million Faces a $62,000 RMD That Pushes Him Into a Higher Tax Bracket
A Couple's $1.2 Million Portfolio Faces a 3.9% Withdrawal Rate That Feels Safe but Is Not
Drew Wood |

A Couple's $1.2 Million Portfolio Faces a 3.9% Withdrawal Rate That Feels Safe but Is Not

Continue Reading

Douglas A. McIntyre |

Siemens Positive on 2011 Growth (SI, GE)

Siemens AG (NYSE: SI) carries a market cap about half that of General Electric Co. (NYSE: GE), but the German…
Paul Ausick |

Nokia Posts Profit, Tosses Dividend

courtesy of Nokia Corp.Nokia Corp. (NYSE: NOK) reported fourth-quarter and full year 2012 results before markets opened this morning. For…
Paul Ausick |

Nokia Disappoints Investors Again

courtesy of Nokia Corp.Nokia Corp. (NYSE: NOK) reported second-quarter 2013 results before markets opened this morning. The mobile handset maker’s…
Douglas A. McIntyre |

Siemens (SI) Shows It True Colors, A Lesson For GE (GE)

Most of the executives at Siemens (SI) are being dragged off in handcuffs as part of the prosecutions in the…
Jon C. Ogg |

Alcatel-Lucent Finds No Takers on Mixed to Dire Earnings (ALU, JNPR, NOK, ERIC, CSCO)

Alcatel-LucentAlcatel-Lucent, S.A. (NYSE: ALU) recently saw its shares jump due to earnings from Juniper Networks, Inc. (NYSE: JNPR) but the…
Douglas A. McIntyre |

GE: When Jack Welch Retired, He Went To Siemens

Stocks: (GE)(SI)When Jack Welch retired from GE, he went to rival Siemens. He isn’t going to buy the Boston Globe…
Douglas A. McIntyre |

A Break-Up Of Nokia

Nokia (NYSE: NOK) looks quite a lot like the old Motorola did five years ago. Motorola’s cellphone business was nearly…
Douglas A. McIntyre |

What’s Important in the Financial World (11/8/2012)

ThinkstockSiemens Sitting Pretty Siemens A.G. (NYSE: SI) released strong earnings for its fiscal fourth quarter and outlined plans to lower…
Why This Analyst Sees 2 Enterprise Software Players Doing Much Better in 2017
Chris Lange |

Why This Analyst Sees 2 Enterprise Software Players Doing Much Better in 2017

Sentiment in the space has been turning more negative, but one key analyst sees software growth stocks as better poised…

Top Gaining Stocks

Cboe Global Markets
CBOE • Vol: 1,568,143
New Pluto Global
PSKY • Vol: 12,285,993
Seagate Technology
STX • Vol: 7,378,346
Oracle
ORCL • Vol: 26,317,675
Datadog
DDOG • Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ • Vol: 4,367,433
Clorox
CLX • Vol: 13,260,523
Stryker
SYK • Vol: 4,519,455
Mohawk Industries
MHK • Vol: 1,859,865
Amgen
AMGN • Vol: 3,818,618