FRANKFURT, July 29 (Reuters) - German lighting maker Osram Licht AG is planning a new savings programme that will include several thousand job cuts as it seeks to keep up with a shift in technology, a German magazine reported on Tuesday.
The programme - dubbed “Push II” - will target low three-digit million euros in annual savings by the end of 2017, weekly business magazine Wirtschafts Woche said in its online edition.
Osram, which is due to publish quarterly financial results on Wednesday, has been scrambling to adjust to a shift from traditional light bulbs to newer technologies such as light-emitting diodes (LEDs).
A new savings drive would succeed its current “Push” programme, which has involved cutting 8,700 jobs, or 21 percent of its workforce, and closing a quarter of its 43 factories to generate gross savings of 1.2 billion euros ($1.6 billion).
“Push” runs out at the end of this year, and Osram Chief Executive Wolfgang Dehen already said last month that more cuts in the traditional lighting business would follow, though he did not say at the time how many jobs could go.
Wirtschafts Woche said the new programme would affect primarily Osram’s sites in Berlin and the southern German city of Augsburg.
Osram shares were up about 0.9 percent at 1030 GMT, compared with a 0.2 rise in Germany’s blue-chip index.
$1 = 0.7443 Euros Reporting by Maria Sheahan; editing by Jane Baird