Siemens is to lay off 15,000 staff in the next year, with a third of redundancies being made in Germany, as the firm looks to make €6 billion (£5 billion) in savings.
The announcement was made on Sunday and follows the ousting of now former CEO Peter Loescher two months ago, after he came up with the cost cutting programme last year.
Siemens is Europe's largest engineering firm. The company's huge range of products cover fridge freezers, gas turbines, coffee makers, trains and hearing aids.
The firm said it has made a deal with unions over around half of the job losses, with the remaining set to be agreed on.
No redundancies have been made as of yet. Siemens currently has 370,000 employees.
The spokesperson added that the company made the announcement in order to end market speculation on how many cuts will be made .
In Germany, around 2,000 redundancies will be made in the firm's industrial sector with a further 1,400 being made on the energy and infrastructure side.
The company spokesperson said Siemens does not plan to make any forced lay offs but rely on voluntary redundancy deals and early retirements.