In a bid to counter sliding profits, German company Siemens could well be on track to downsize employees and close offices, indicates a Reuters report. Siemens is a major employer and one Germany's largest firms in terms of market capital.

"Germany's Siemens may outline job cuts and office closures on Thursday to stop profits sliding as customers put off ordering engineering equipment because of Europe's economic crisis," reported Reuters.

The company's Chief Executive Peter Loescher's plans of enhancing growth via energy-saving and infrastructure products has not worked as estimated. Analysts anticipate that Loescher will present a new plan (of up to Euro 4 billion in savings) to managers. Loescher is expected to announce between 2 billion to 4 billion euros in savings when he addresses nearly 600 managers in Berlin, out of which some may end up losing their jobs.

One of the largest European economies, thus far Germany has been able to grapple with the economic downturn and the euro zone crisis better than its European counterparts. Exports from successful industrial companies have played a pivotal role in driving growth. However, the expected slowing down in Siemens' revenue growth in Q4 is indicative that the euro zone crisis is affecting the demand for German goods.

In 2011, Loescher had said that the company's annual sales would see a growth from 76 billion in 2010 to 100 billion euros in the coming years. However, since the global economy is still recovering, the growth has not been at par with the investments.

"It has become obvious that the margin gap between Siemens and its competitors has opened again," noted HSBC analyst Michael Hagmann.

Earlier in July this year, Siemens had reported a massive drop in new orders, adding pressure on Loescher to take appropriate action.

Reuters reported that Loescher may "tackle a gap between Siemens' handful of market-leading businesses and its underperforming units - wind and solar power as well as the new Infrastructures & Cities unit - possibly by divesting some assets."

A possibility exists that he shuts offices in nearly 190 countries where the firm has operations, and focus on only those which make profits.

The Reuters report also averred that details of Loescher's savings plan will likely be published when Siemens releases its financial results on Nov. 8. Additionally, the German media has suggested that the company may make thousands of job cuts.