Siemens plans to reduce its workforce by 6,900.
The unions have reacted negatively to the layoffs that Siemens management aims to reduce costs and adapt to the changing energy industry with internal discussions with Siemens employees, the Munich branch has announced that it plans to reduce its workforce by 6,900 worldwide as part of a large restructuring plan in the energy department. Approximately half of all employees will be in Germany. The company plans to shut down its plant in Görlitz and Leipzig and sell its plant in Erfurt.
“The energy industry is currently experiencing dangers of unprecedented size and speed,” said Lisa David, one of the board members. And more about renewable energy, which puts other forms of power under pressure.
Siemens says that the demand for large-scale gas turbines (which generate more than 100 megawatts of electricity) in the world is rapidly declining. On the other hand, there are about 400 turbines in the global technical industry. Joe Kaeser, a Siemens executive, warns that “Reducing the number of employees is painful,” but it is necessary and the company will try to reduce the impact by allowing employees to work elsewhere or get a new training. Siemens’ traditional business model that provides technology and services for the electricity industry has changed dramatically in the era of renewable energy. The costs of solar and wind have fallen sharply and are cheaper than fossil energy, resulting in a narrower market for gas turbines. The company has to reduce costs.
Siemens plans to reduce staffing. Overall, the company posted an 11% increase in net profit in the year 2017 of € 6.2 billion, which is typical for employee representatives to show dissatisfaction and announced to resist dismissal. Knowing the plan to reduce staff. IG Metal engineering unions in Germany have accused Siemens of “irresponsible” to lay off workers while the company is profitable and there is no close consultation with staff in accordance with the practice of Germany made throughout. “Siemens should have to ask themselves. Want to continue in this industry? Or just want to please the shareholders, “said Jurgen Wechsler, head of the IG Metal trade union in Bavaria. “It is unacceptable to reduce the number of employees, especially when the company is in a profitable position. ”
The protest came after Siemens (which operates several businesses such as trains, wind turbines and medical devices) announced a plan to reduce the number of employees by about 6,000 in the wind power unit. In large markets, such as India and the United States, the company closed 15,000 employees in 2013, partly as a result of the decision to abandon nuclear power. Lahore to turn to the replacement power. The entire nuclear department was dissolved or disposed of, including home electrical appliances, communications networks, nuclear power, and solar power.
The factory in three cities that Siemens has announced is located in an area formerly known as East Germany. Energy Minister Brigitte Zypries has warned Siemens that the closure of the plant in the eastern part of the country would trigger a shutdown. “Suspicion and dissatisfaction”. This is one reason why the right-wing party in Germany (AfD: Alternative for Germany Party) was elected and had a parliamentary seat in the September elections. It received 12.6 percent of the vote.