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Unfortunately, more services for some groups may increase costs and force reductions in coverage for others.
Siemens expects the work force reductions to save it 1.2 billion euros ($1.9 billion) by 2010.
The balance of the work force reductions will come next year.
Mr. Schacht said he did not foresee further work force reductions.
Many of Europe's biggest companies have announced plans for big work force reductions in recent months.
Longer term, new regulations will probably restrain profitability further, necessitating even more work force reductions.
Similar(6)
The downsizing announced on Wednesday follows a series of work-force reductions at Disney's video game and Web site unit.
Work-force reductions occurred principally in the United States, where the company cut 74 jobs, or about 40percentt of its work force.
This common apology for major work-force reductions is seriously flawed when we regard workers as valuable assets rather than as simply operating costs to be cut.
"The nature of these calls," he said, "suggests that employers are looking at continued work-force reductions well into the first quarter".
In a letter to The East Hampton Star early this year, Ms. Leahy asked for support during a period of work-force reductions, streamlined operations and a cut in the pension plan to help stem fiscal losses.
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