Siemens to Cut Energy Jobs

Siemens to Cut Energy JobsSiemens to Cut Energy Jobs

German industrials conglomerate Siemens is cutting or transferring to other countries more than 1,000 jobs at a unit making gear for oil drillers and mining companies, as low oil prices have depressed capital spending, a German daily reported. Siemens was making the cuts because the Process Industries and Drives Division in Germany unit's capacities were underutilized, German business newspaper Handelsblatt cited industry sources as saying, Reuters reported. Siemens, which has recently announced job-cutting measures as it battles to cope with subdued economic growth and weak demand from energy customers, declined to comment. The price of oil has fallen around 70% since mid-2014, prompting oil exploration and mining customers to shelve orders for products such as the large drives made by Siemens' Process Industries and Drives unit. At its quarterly results presentation, Siemens Chief Executive Joe Kaeser acknowledged that the unit, much like the Power and Gas division, is struggling to cope with structural changes.