Siemens Energy announced today it plans to slash 7 800 positions worldwide as part of a cost-cutting drive, including 3 000 in Germany, 1 700 in the U.S. and 3 100 in other locations.
The job cuts are equivalent to slightly more than 8.5% of its global workforce. The reductions are planned by the end of the 2025, most of the cuts will be implemented by 2023.
Christian Bruch, CEO of Siemens Energy, said:
The energy market is significantly changing which offers us opportunities but at the same time presents us with great challenges
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
Around 75% of the cuts will be made in management, administration and sales. Siemens Energy hopes to reduce costs in is gas & power segment by at least €300 million, and with that improve its competitiveness and enhance its long-term cost structure.
Siemens Energy management aims to achieve an Adjusted EBITA margin before Special Items of 6.5% to 8.5% for fiscal 2023. When it comes to decarbonization, Siemens Energy is an industry leader: more than 50% of its portfolio is already decarbonized.
The broad product portfolio of Siemens Energy includes products enabling the energy transition, such as hybrid power plants and gas turbines that can be operated with hydrogen.
Siemens Energy is a key player in wind energy and invests in the hydrogen economy.