Siemens to cut 10,000 jobs in major overhaul

Siemens to cut 10,000 jobs in major overhaul

Industrial equipment manufacturer Siemens says it’ll cut some 10,000 jobs at a significant restructuring that will entail creating new areas of growth and spinning off its oil, gas and electricity generation industry.

The company said it would spin off its branch that produces its entrepreneurial freedom to increase, while embarking on a sweeping cost-cutting attempt at its operations.

The gas and electricity division has been under pressure because of a wider trend toward renewable energy such as wind and sunlight electricity. Competitors in the energy industry for example Boston-headquartered General Electric and Japan’s Mitsubishi have fought too.

Siemens stated in the statement Tuesday it would keep a stake of less than 50% in the firm that was spun-off and would package in a majority stake in its energies company. This would create exactly what Siemens CEO Joe Kaeser known as”a potent pure drama in the power and electricity industry” that may offer products across the entire scope of the energy economy from a single source.

Kaeser also declared sweeping cost cuts to increase profitability at the company’s remaining businesses, which range across energy infrastructure such as electricity grid control, factory automation, and trains.

The business intends to extract 2.2 billion euros in costs by 2023, in the class of which it will fall some 10,400 positions. The company says it expects development to make a few 20,500 new jobs from 2023. If it comes to job reductions, Siemens said that”all steps worldwide are to be implemented in as socially responsible a manner as possible.”

Siemens AG said Wednesday its net profit fell to 1.92 billion euros ($2.15 billion) in the first three months of this calendar year, by 2.02 billion a year earlier, when earnings were boosted by 900 million euros by a share transfer.

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