The German industrial conglomerate Siemens announced Tuesday the suppression of 2,700 jobs in the world, including 1,400 in Germany, in its electric turbines division which it intends to offload by an IPO. This restructuring aims to "reduce costs and address the decline in the number of major projects" and adds to measures already announced for this sector, providing for the elimination of 7,000 jobs and the closure of sites in Germany.
Job cuts that will be done "in the coming years"
Siemens employs a total of 379,000 people worldwide, including 64,000 in the electric turbine sector. The job cuts will be done "in the coming years," says the group without further details in a statement. The very large turbines of Siemens are less and less in demand in the world. In cause: the disaffection for fossil energies. Despite some massive contracts in Egypt or Iraq, the profitability of this division reached only 3.8% in 2018, while the conglomerate as a whole set a goal of profitability of 11% to 15%.
After the IPO of its medical equipment (Thermohalines), its wind turbine division (Gamesa) and bulbs (Osram), Siemens had recently decided to separate from its historical activity, 150 years after the invention. Dynamo-electric by Werner Siemens in his workshop in Berlin. The group has opted for an IPO of "Power and Gas", planned by September 2020, and intends to retain a blocking minority.