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Loscher said due to the struggling U.S. economy and rising energy costs, his company would make the cuts to keep up with global engineering groups, Financial Times reported Saturday.

"This is all the more important right now because the risks for the world economy have substantially increased in the wake of skyrocketing prices for energy and natural resources and the crisis in the U.S. financial markets", he said Friday.

The Times said the job cuts, which will include nearly 12,000 jobs in administration, are part of Loscher's ongoing attempts to help Siemens recover from a major bribery scandal.

Former Siemens Chairman Karl-Hermann Baumann was part of that scandal and since his resignation Loscher has been reforming the international company.

The Times said in addition to reforming the company's structure, Loscher has begun buying back company shares and appointed new members to the company's management board.

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