Siemens Energy to axe 7,800 jobs in gas and power division by 2025
Author: Roland Peschetz. License: Creative Commons, Attribution 2.0 Generic
Siemens Energy AG (FRA:ENR) will cut around 7,800 jobs from its gas and power division globally by 2025 to ensure corporate survival and competitiveness as it distances itself from the coal-based power generation sector.
The German company, which supplies gas and steam turbines and energy solutions, last year announced it would no longer take part in new tenders for coal-fired power plants and said it would assess how this decision would affect employees and partnerships in the sector.
The verdict announced on Tuesday spells the elimination of 3,000 jobs in Germany, 1,700 in the US and 3,100 at other sites around the world.
The majority of workers will be laid off by the end of the financial year 2023, with Siemens Energy saying that the job cuts will lead to “a mid to high triple digit million euro” in restructuring costs for the fiscal years 2020 through 2023.
The company plans to complete the layoff process by the end of the fiscal year 2025.
“The energy market is significantly changing which offers us opportunities but at the same time presents us with great challenges. With this program we want to regain our competitiveness and financial strength to shape the energy world of tomorrow,” said Siemens Energy CEO Christian Bruch.
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