Siemens cuts a further 4,500 jobs
Siemens has informed its Supervisory Board and the relevant committee of employee representatives regarding the next steps planned for its Vision 2020 program.
“With the initiation of these measures, the company’s structural reorganization has been completed for the most part,” said Joe Kaeser, President and CEO of Siemens AG.
The reorganization will affect about another 4,500 jobs worldwide, of which some 2,200 are currently expected to be in Germany. In February 2015, Siemens announced the reduction of roughly 7,800 jobs worldwide ‒ including around 3,300 in Germany ‒ as part of its program to streamline administrative functions.
Following discussions with the employee representatives, the figure for jobs affected in Germany was reduced to roughly 2,900.
At the Power and Gas Division, Siemens is planning, among other things, to bundle sales activities, make additional investments of around €100 million in research and development, optimize the portfolio structure and improve the cost position.
These measures are being taken in response to the persistently difficult environment in the global power generation market. The Power and Gas Division is having to cope, among other things, with regulatory changes, massive price erosion, aggressive competitors and regional overcapacities, a press release states.