As a giant of electrical engineering, Siemens is still very influential in the international arena. It is reported that Siemens issued a notice because the company has made a restructuring and adjustment plan in the energy and natural gas sector. In the plan, it is possible to carry out the door. Large-scale layoffs, the number of layoffs reached 6,900.
According to foreign media reports, German electrical engineering giant Siemens plans to announce a large-scale restructuring plan on Thursday, which will involve 6,900 layoffs, covering one-third of its core business, including the power and gas sectors. Power generation service department, manufacturing department and transmission department.
Siemens' cost-cutting measures are at a time when global power industry growth is generally slowing, and major companies including rival General Electric are struggling to cope with the negative impact of falling demand for core power business.
Siemens CEO Joe Kaeser’s announcement of the company’s annual earnings report last week hinted that the company’s energy and gas sector has fallen into a long-term dilemma. At present, Siemens is in the transition stage from large-scale energy equipment such as coal, natural gas and nuclear power plants to small equipment such as wind energy and solar energy.
Joye Kaiser said: "If the future of the new business is broad, then we must respond. Although the process is very difficult, it must be adjusted in time."
Just before Joey Kaiser’s statement, GE just announced a comprehensive restructuring plan that included a halving of dividends to make the company’s business more streamlined and focused. General Electric CEO John Flannery told investors that 2018 will be the company's "year of rebirth."
For the first three quarters of September 30 this year, Siemens revenue was 84.3 billion euros, a 4% increase over the same period last year, and profits were 9.4 billion euros, an increase of 8 times. In the total revenue distribution of Siemens, the power, gas and transmission sectors contributed 30% of the total.
It is unclear whether the restructuring will affect the entire Siemens company. At present, Siemens has a total of 351,000 employees worldwide.
On the other hand, Siemens' layoffs and restructuring will also face pressure from unions. Like many large German industrial companies, trade unions have played a strict supervisory role in corporate layoffs.
A member of the board of directors of Siemens said that the company's workers have begun to plan a small-scale protest. The company's executives are expected to hold a closed meeting with labor officials on Thursday to announce a detailed restructuring plan, details of which are expected to be made public later.
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