Siemens announces broad restructuring

Siemens will cut about 6,900 jobs, or close to 2 percent of its global workforce, mainly at its power and gas division supplying large gas turbines for electricity generation. The division has been struggling due to the global surge in solar and wind.

“The power generation industry is experiencing disruption of unprecedented scope and speed” Siemens management board member Lisa Davis said. “With their innovative strength and rapidly expanding generation capacity, renewables are putting other forms of power generation under increasing pressure,” she added.

The lay-offs will take place in Germany primarily. Siemens employs about 16,000 people in power generation in Germany, roughly a third of its global workforce in the power generation business.

“The cuts are necessary to ensure that our expertise in power-plant technology, generators and large electrical motors stays competitive over the long term. That’s the goal behind the measures we’re taking. However, we can reach this goal only if we find answers to the worldwide overcapacities and the resulting price pressure,” said Janina Kugel, Chief Human Resources Officer and member of the Managing Board of Siemens AG. “We’ll plan these measures carefully, diligently and for the long term,” continued Kugel.