Siemens job cuts 2017 : About 7,000 jobs to go as gas turbine demand falls

Energy industry news : In the latest news about Siemens job cuts 2017, the industrial manufacturing company has announced its decision to slash close to 7,000 jobs in its global energy operations.

The decision it says, is part of a restructuring plan to adapt itself to the decreasing demand for conventional power generation.

Based in Germany, Siemens is a leading gas turbine manufacturer. The company has been under pressure from the general preference to renewable energy generation.

Siemens reveals that its decision on job cuts has been driven by accelerating structural changes that the fossil power generation market and the commodity sector have been facing of late.

The manufacturing giant says that while 400 large gas turbines or so of more than 100MW capacity are manufactured each year by all the players in the sector put together, the demand though has fallen down drastically in recent times.

Siemens gas turbine manufacturing. Photo courtesy of Siemens AG.

The German gas turbine manufacturer estimates that at the most, there will demand for around 110 turbines a year, which means that the current supply is a lot more than what’s actually needed by the industry.

Commenting on the Siemens job cuts 2017, Lisa Davis who is the company’s managing board member said: “The power generation industry is experiencing disruption of unprecedented scope and speed.

“With their innovative strength and rapidly expanding generation capacity, renewables are putting other forms of power generation under increasing pressure.”

Lisa Davis also said that Siemens would look to invest in future-oriented technologies while executing the changes in its workforce in “a fast and prudent manner”.

Media reports about Siemens job cuts 2017 suggest that there will be a showdown between the employees and the company. Already, there are reports of protests picking up steam across Germany against the management’s decision. In Germany, 3,500 jobs are set to go following the latest layoffs at Siemens.

Facing the brunt of the job cuts at Siemens will be employees belonging to the company’s Power and Gas Division, Power Generation Services Division and the Process Industries and Drives Division.

Janina Kugel, the chief human resources officer and managing board member of the company, commenting on the Siemens job cuts 2017, said: “The cuts are necessary to ensure that our expertise in power-plant technology, generators and large electrical motors stays competitive over the long term. That’s the goal behind the measures we’re taking.

“However, we can reach this goal only if we find answers to the worldwide overcapacities and the resulting price pressure.”

Earlier in the month, Siemens Gamesa, the wind turbine manufacturer which is a subsidiary of Siemens revealed a restructuring plan which would result in 6,000 job cuts across its business in 24 countries.

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