Siemens Will Cut 7,800 Jobs From Gas and Power

by ronfluegge 8. February 2021 14:03

Siemens Energy announced it will cut 7,800 jobs from its gas and power division by 2025 as the company attempts to be more competitive in a global energy market that is moving away from fossil fuels and toward renewable energy.

The company on Feb. 2 in its latest earnings release said it plans to jettison about one-sixth of the workforce that supplies turbines to the power generation sector. It said most of the cuts would come in the next couple of years, including about 3,000 jobs in Germany and about 1,700 in the U.S. The cuts represent about 8.5% of the company’s total global workforce.

Siemens said the majority of those being let go currently hold management or sales positions. The company Tuesday, in announcing its first-quarter 2021 fiscal year earnings, for the period ending Dec. 31, 2020, said it “will incur estimated restructuring costs in a mid- to high-triple-digit million euro range for the fiscal years 2020 to 2023.”

Christian Bruch, president and CEO of Siemens Energy AG, said, ‘The energy market is significantly changing which offers us opportunities but at the same time [it] presents us with great challenges. We will undertake these measures in the most socially responsible way possible.” Despite having to make job cuts, Bruch said, “The first quarter proves that we are on the right path to reach our annual targets. The Siemens Energy team achieved a solid start into the new fiscal year even under difficult circumstances.

“With this program we want to regain our competitiveness and financial strength to shape the energy world of tomorrow,” Bruch said. “I really believe we’re putting together a company that can shape the future of the energy market.”

The German company last year announced it would no longer take part in new tenders for coal-fired power plants, joining Toshiba, General Electric (GE), and Black & Veatch among energy companies ending investments in the coal sector.

Siemens Will Cut 7,800 Jobs From Gas and Power (powermag.com)

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