Siemens to make further cuts in power division

Job losses could be on the way at Siemens as the company reels from recent losses in its power and gas units.

An unnamed source familiar with the matter told Reuters on Thursday, “Various scenarios are being considered,” adding details of the overhaul were still to be determined.

The company announced a 41 per cent order drop in June and 23 per cent fall in profits as the ongoing move away from coal and gas power to clean power continues.

à‚ “In light of the dramatic changes seen across the global fossil power market, new cost-cutting measures are required in our view,” Barclays analysts said in a note.

German monthly Manager Magazin earlier cited company sources as saying that Siemens could shut or sell up to 11 of its 23 Power and Gas sites around the world, which could include plants in the eastern German cities of Erfurt and Goerlitz.

The company has so far been non-committal on whether it plans to overhaul its power business. However, the magazine stated a restructuring plan will be introduced in November.

Excluding its services business, the division has 30,000 employees worldwide, of which 12,000 are based in Germany. Siemens is due to publish fourth-quarter financial results on November 9.

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