Siemens said on Tuesday (June 18) that it would cut 2,700 jobs at its gas and power unit.
This will take place “over several years” and affects its staff worldwide, including 1,400 in its home country Germany.
Siemens declined to provide a breakdown of the number of affected staff by countries.
This structural change is part of the company’s long-term measures to strengthen the productivity and competitiveness of Siemens’ Gas and Power (GP) Operating Company.
“The planned measures will help us create more opportunity for growth and the security that comes from being a competitive player in the energy market,” said Lisa Davis, member of the Managing Board of Siemens AG and CEO of Gas and Power.
In addition, GP will require further savings of €500 million to significantly improve its cost competitiveness.
The additional savings will be enabled by the new setup of the GP Operating Company.
Merging and right-sizing the different businesses will save them €200 million. A further €100 million will result from the new regional setup.
The remaining €200 million will be achieved by optimising support functions.
Siemens said it will consult with relevant employee representatives before implementing the planned measures.
Taking into account the efficiency-related workforce adjustments across all areas, including today’s adjustments at GP, there will, accordingly be a net increase of around 10,000 jobs worldwide within the same time period.
Featured Image Credit: Siemens Stiftung