Siemens AG’s new Chief Executive Officer Joe Kaeser is widening job cuts from an initial plan after the failure to catch up in profitability with rivals General Electric Co. and ABB Ltd. cost his predecessor the job.

The Germany-based technology giant, which employs 370,000 people worldwide, plans to cut 15,000 jobs. Siemens operates across North Carolina, including several operations in the Triangle that are focused on health and energy.

Siemens opened a major new medical imaging facility in Cary in 2010, and the Siemens energy unit announced plans that same year to add more than 100 jobs in Wake County. Also in 2010 Siemens disclosed plans to add more than 800 jobs in Charlotte. 

German news agency dpa reported Sunday that the company wants to cut 5,000 jobs in Germany and another 10,000 jobs abroad.

A Siemens spokesman, whose name was not given, told dpa that the cutbacks will not necessarily mean that all the workers will lose their jobs, since some could be transferred to other departments.

The Munich-based company has around 370,000 employees and makes a wide range of industrial machinery, including trains, power generators and transmission equipment, and medical scanners.

According to the Siemens website, the company’s operations in North Carolina include:

1) BSH Home Appliances Corporation
100 Bosch Boulevard, New Bern, NC 

2) Siemens Infrastructure & Cities
7000 Siemens Road, Wendell, NC 

3) Siemens Infrastructure & Cities
7000 Siemens Road, Wendell, NC 

4) Siemens Energy, Inc.
5101 Westinghouse Boulevard, Charlotte, NC 

5) Siemens Healthcare
110 Macalyson Court, Cary, NC 

6) Siemens Healthcare
209 Gregson Drive, Cary, NC 

7) Siemens Infrastructure & Cities
2201 Crown Pointe Executive Drive, Suite K, Charlotte, NC

8) Siemens Infrastructure & Cities
215 Southport Drive, Suite 900, Morrisville, NC 

9) Siemens Industry Inc.
37 Haywood Street, Suite 200, Asheville, NC 

10) Siemens Industry Inc.
2201 Crownpoint Executive Drive, Suite K, Charlotte, NC

11) Siemens Water Technologies
2150 West Popular Street, Gastonia, NC 

12) Siemens Industry Inc.
215 Southport Drive, Suite 900, Morrisville, NC

13) Siemens Industry, Inc.
4424 Taggart Creek Road, Suite 105, Charlotte, NC 

14) Siemens Water Technologies,
1301 South Briggs Avenue, Durham, NC 

15) Siemens Energy, Inc.
110 MacAlyson Court, Cary, NC 

16) Siemens Healthcare Solutions USA, Inc.
215 Gregson Drive, Cary, NC 

17) Siemens Healthcare Solutions USA, Inc.
221 Gregson Drive, Cary, NC =

18) Siemens Healthcare Solutions USA, Inc.
225 Gregson Drive, Cary, NC 27511 

Siemens, Europe’s largest engineering company, had first projected some 8,000 job cuts globally, a person familiar with the program told Bloomberg in October 2012.

Former CEO Peter Loescher lost his post following a July 25 announcement that the Munich-based company won’t meet a goal of profit representing 12 percent of sales next year. The target involved 6.3 billion euros ($8.5 billion) in savings at Siemens, which has faced mounting charges for failed power and train projects.

“If you see a billion euros in charges this year, that pretty much lines up with 15,000 job cuts,” Andreas Willi, a London-based analyst at JPMorgan Chase & Co. who has a neutral recommendation on Siemens stock, said by phone yesterday. “There have been charges in drive technologies, power generation and transmissions, so you expect them to bear the weight.”

60 Units

The company has 60 sub-units that make products including trains, gas turbines, medical scanners and factory-automation gear. The manufacturer raised its forecast in July for charges associated with the Siemens 2014 efficiency program to 1 billion euros for this fiscal year from an earlier prediction of 900 million euros. The costs may increase by a further 100 million euros, Kaeser told analysts at the time.

In Germany, 2,000 employees at the industry division, 1,400 energy-sector workers and 1,400 in the infrastructure and cities unit will have to leave, Santen said. Another 200 administrative roles will also be terminated by the end of September 2014.

About half of the job cuts have already been implemented, while the rest are still being negotiated with unions and will include early retirements.

Siemens fell as much as 1.3 percent to 88.70 euros and was trading down 0.9 percent as of 10:04 a.m. in Frankfurt. That reduced the gain this year to 12 percent, valuing the company at 78.4 billion euros.

Investor Confidence

Kaeser, who was promoted to lead the company in August after holding the chief financial officer position for seven years, is working to regain investor confidence following five forecast cuts and a 22 percent stock decline in his predecessor Loescher’s six-year tenure.

The latest forecast was cut after a majority of units said in their internal predictions that they will probably miss their goals, two people familiar with the matter said at the time. The gap in so-called sector profit between the forecast and the actual numbers was about 1.5 billion euros, one person said.

While still CFO, Kaeser said he expected to complete disposals of businesses including airport luggage systems, mail automation and water technology in the fiscal year starting Oct. 1. The divestments follow the spinning off of the Osram Licht AG lighting unit and the sale of a 50 percent stake in the Nokia Siemens Networks venture.

Siemens had a profit margin of 9.5 percent in fiscal 2012, while ABB and General Electric had margins of 10.3 percent and 15 percent, respectively. The German company’s reorganization costs in the third quarter ended June 30 totaled 436 million euros, with the infrastructure and cities business accounting for 41 percent of that amount and the industry unit for 32 percent.

In August, Siemens’s debt was downgraded by Fitch Ratings, which cited an accelerating decline in the manufacturer’s margins in the most recent quarter and “insufficient progress” on restructuring measures. The appointment of Kaeser as CEO is a “positive development,” it said.