World Economy

Siemens to Cut 4,500 More Jobs

Siemens to Cut 4,500 More JobsSiemens to Cut 4,500 More Jobs

German technology giant Siemens has announced it will have to slash many more jobs to complete its restructuring drive. The company has experienced particular problems in its power generation business.

Siemens reported Thursday it would need to cut a further 4,500 jobs as part of its global restructuring effort, with a view to making the company more competitive and profitable. It said 2,200 jobs would have to be slashed in Germany.

Siemens noted on its website this morning that the move was primarily aimed at improving the performance of its struggling power generation division.

The segment had been suffering from a difficult market environment as energy prices dropped sharply as did demand for Siemens’ big gas turbines.

“With these measures being initiated, the restructuring of the company is in the main completed,” CEO Joe Kaeser said in a statement posted online.

The planned cuts come on top of the 7,800 redundancies that the firm announced in February – a figure that was later reduced to 7,400. Profit generated by Siemens’ core industrial business dropped by 5 percent in the second quarter, the company announced Thursday.

But the firm’s overall performance was much better as Siemens managed to triple its bottom-line earnings totaling 3.9 billion euros ($4.4 billion). However, the positive result was mainly achieved by the sale of the company’s hearing aid segment as well as the sale of its stock in the HSB household appliance segment to Bosch.