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Siemens, German Unions Agree on Job Cuts

Siemens, German Unions Agree on Job CutsSiemens, German Unions Agree on Job Cuts

Siemens has reached an agreement in principle with trade unions about its plans to cut jobs and restructure its struggling Power and Gas and Process Industries and Drives businesses in Germany, it said on Tuesday, Reuters reported. The German industrial company is targeting savings of several hundred million euros in the program designed to tackle plummeting demand caused by a switch away from fossil fuel generated electricity to renewable energy sources. The downturn has dragged down Siemens’ results in recent quarters, with demand for large gas turbines not expected to recover in the near future, according to analysts. Siemens’ rival General Electric has also been hit, and last year announced plans to axe 12,000 jobs at its power business. Power and gas orders at Siemens are expected to drop 23% during the company’s second quarter, with results due on Wednesday, while profit from the division is forecast to plunge 62%, according to a Reuters poll. In November, Siemens said it would cut 6,900 jobs worldwide, mainly at the PG division.

 

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