Siemens to cut 4,500 more jobs
Siemens's power & gas division will slash 4,500 more jobs in wake of a massive change in its energy business, the German conglomerate confirmed in a recently released statement. Previously, the company announced 7,800 job cuts. Last year, General Electric Co. bought the power business of France's Alstom and the current move is also related to that past consolidation trend. According to Joe Kaeser, chief executive, "For business volume, we performed well in our markets. The profitability of our industrial business shows that we must still improve some businesses".
Earlier also, 7,800 job cuts were announced by the company. This job slash is related to a group-wide reorganization plan and new chief executive Joe Kaeser came up with the idea. Germany will face nearly half of the new cuts, i.e. 2,200. The company said that the move will complete its reorganization. It also made announcements regarding new targets so as to improve performance at its low-margin businesses by mid-2017.
It is yet unclear whether more jobs will be cut in future. According to Siemens, the division was having hard time dealing with other things such as massive price erosion, regulatory changes, aggressive competitors and regional overcapacities.
The company published a slight improvement in its group-wide performance in the three months to March and made the announcement after that. New orders adjusted for currency swings and acquisitions and disposals, increased 7% from a year ago. Revenue of the company increased 8% to _18.0 billion, however profitability on the group's core industrial businesses decreased 5%. The company's shares decreased 2% to a three-month low on the news.
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