Siemens Energy is to cut around 7800 jobs globally as part of a plan to reduce costs by €300m in its power and gas division.
The German company, which owns 67% of Siemens Gamesa and offers transmission solutions in renewables, said three quarters of the roles will be in management, administration and sales.
Some 3000 jobs will go in Germany, 1700 in the US and 3100 at other locations globally.
The reductions are planned by the end of the 2025 financial year, with a large part to be implemented by the end of the 2023 financial year.
In negotiations with the employee representatives in geographies under co-determination, the company aims at reaching an agreement on the proposed measures as soon as possible.
The firm also presented other measures today including cost reductions related to external service providers, purchasing and logistics, to streamlining the IT landscape.
“The energy market is significantly changing which offers us opportunities but at the same time presents us with great challenges,” said chief executive Christian Bruch (pictured).
“With this program we want to regain our competitiveness and financial strength to shape the energy world of tomorrow. We are fully aware that this is a challenging program for our employees. Hence, we will undertake these measures in the most socially responsible way possible.”
The announcement was made as Siemens Energy said adjusted EBITDA for the first quarter ending 31 December 2020 was €243m, turning around a €117m loss in the same three months of 2020.
“Adjusted EBITA was positively impacted due to revenue growth and operational improvements including lower costs year-over-year. Both segments showed an increased profit with Siemens Gamesa posting stronger improvements,” said the company.