Siemens said last month it was spinning off its gas and power business, which has acted as a drag on the firm's performance as the rise of renewable power hits demand for gas turbines.
Siemens plans to cut 2,700 jobs at its gas and power company, in addition to 10,400 it is already shedding in its core units, the German engineering firm said on June 18.
Siemens said last month it was spinning off its gas and power business, which has acted as a drag on the firm's performance as the rise of renewable power hits demand for gas turbines.
The firm said on Tuesday the creation of a separate operating company had led to significant synergies. Job cuts were needed to readjust to the changing market, with 2,700 positions to go worldwide, including 1,400 in Germany, it said.
The cuts will primarily affect the projects and power transmission businesses as well as support functions.
The gas and power business needs savings of 500 million euros ($559 million) to improve competitiveness, Siemens said.
Restructuring would save 200 million euros, cutting support functions another 200 million and a new regional structure a further 100 million, it said.
The company will now begin consultations with employee representatives so the job cuts can happen in a "socially responsible" way, it said.
Siemens said last month it is targeting cost cuts of 2.2 billion euros by 2023 through cutting 10,400 jobs, mainly administration and support roles, at its remaining core units.
Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.
