Siemens is cutting around 1200 jobs in its German energy operations according to local radio reports in Bavaria, southern Germany.
Germany‘s second largest company is being forced to act as a result of ongoing weak demand
à‚ for power plant equipment and maintenance, radio station Bayerischer Rundfunk reported on Wednesday, citing company sources.
Siemens (NYSE:à‚ SI) confirmed that it planned “personnel adjustments” at the business but declined to say how many jobs would go because it wants to negotiate with workers first.
Siemens unveiled a major corporate overhaul this year after lagging big competitors like General Electric (GE.N) and Philips (PHG.AS) in terms of innovation and profitability and ousting its chief executive in a boardroom battle.
Lisa Davis, who was named the new head of Siemens’ energy business as part of the overhaul, said earlier this month that the group could shut some factories because it expects low profit margins at the division in the next couple of years.
Siemens spokeseperson, Gerda Gottschick, told Power Engineering International, “The relevant employee representatives were informed of the current business situation and the planning for personnel adjustments at, above all, the Power and Gas Division (PG), the Power Generation Services Division (PS) and Logistics and Airport Solutions (LAS). These matters will impact a number of locations in Germany. We’ll be starting the necessary consultations and negotiations with the employee representatives very shortly but can’t anticipate the talks by providing details at this time.” à‚
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