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24 September, 2017

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Siemens to cut around 2,500 Drives and Process jobs

09 March, 2016

Siemens has announced plans to cut around 2,500 jobs from its Large Drives and Process Solutions businesses worldwide, in response to the downturn in the oil and gas, metals and mining sectors.

At the same time, the company in planning to take on at least 25,000 people per year, for several years, to boost its transformation into a digital industrial company.

The main goal of the planned cutbacks is to consolidate Siemens’ activities in the affected sectors and to optimise the size of its manufacturing locations in Europe to improve its competitiveness in a market environment that “continues to be difficult”. Siemens’ current locations will be retained.

About 2,000 of the jobs being lost will be Germany, mainly in Bavaria. About 1,000 of them will be affected by bundling certain product lines at specific locations. The company also wants to improve the efficiency of project work in its Process Solutions business. It says that the related workforce reductions will be made “in a socially responsible way”.

Brandes: we've got to adapt

“Plunging demand in raw materials markets has led to a significant intensification of competition, particularly in Asia,” says Dr Jürgen Brandes, CEO of Siemens’ Process Industries and Drives Division. “To guarantee our competitiveness, we've got to adapt to these conditions. That's why we've got to optimise our manufacturing network worldwide and reduce the number of facilities producing similar or identical products. We've also got to increase the global competitiveness of engineering at our Process Solutions business unit.”

At the same time, Siemens is driving its transformation into a digital company and setting the course for innovation and further growth. As a result of a previously announced increase in investment, worth more than €1bn, in r&d, productivity and global sales, Siemens plans to keep its recruitment of new staff at a high level in the years ahead. It expects to hire at least 25,000 new employees worldwide a year for several years – around 3,000 of them in Germany.




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