Siemens plans cuts as capacities in the process industry department and plants in Germany are underutilized
The German industrial conglomerate Siemens plans to eliminate or relocate more than 1,000 jobs from its production department for oil producers and mining companies as low oil prices have forced these companies to reduce capital expenditure, reports the German Handelsblatt.
Siemens plans cuts as capacities in the process industry department and plants in Germany are underutilized, the daily reported, citing industry sources. Siemens, which recently announced job cuts due to subdued economic growth and weak demand from clients in the energy sector, declined to comment on this matter.
The price of oil has fallen by about 70 percent since mid-2014, forcing oil producers and mining companies to reduce investments, among other things, in large plants produced by Siemens. At a presentation of quarterly results, Siemens CEO Joe Kaeser recently acknowledged that this department – as well as the energy and gas department – is struggling with structural changes.
