Germany-based Siemens AG, which has a presence in Houston, introduced Nov. 16 it’s making structural adjustments that may embody 6,900 job cuts worldwide over a number of years.

Half of the cuts will probably be in Germany, however one other 1,800 job cuts will come from the consolidation of manufacturing services and administrative capabilities within the U.S., in response to a press launch.

However, Siemens goals to switch as lots of the affected workers as potential to open positions inside the firm. At final rely, there have been three,200 job vacancies.

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The consolidation plan will have an effect on three divisions of Siemens: Power and Gas, Power Generation Services and Process Industries and Drives.

One main issue driving the restructuring is the drop in world demand for giant fuel generators, and many of the job cuts are coming from the Power and Gas Division, in response to the discharge.

“The energy technology business is experiencing disruption of unprecedented scope and velocity,” Lisa Davis, a member of the managing board of Siemens AG, stated within the launch. “With their modern energy and quickly increasing technology capability, renewables are placing different types of energy technology underneath rising strain. … Our plan is to execute these adjustments in a quick and prudent method whereas additionally investing in future-oriented applied sciences. We’re dedicated to rising this enterprise and to being a succesful and dependable accomplice for our clients with a purpose to assist guarantee their long-term success.”

Davis additionally famous that the newest consolidation plans come three years after Siemens’ Power and Gas Division started responding to those market adjustments with its PG2020 plan. That plan included regionalizing enterprise duty, lowering product prices and new product choices. However, the PG2020 measures “need to be additional intensified because the scope and velocity of the market adjustments have elevated considerably,” the press launch states.

Siemens additionally plans to create facilities of excellence at sure areas to leverage experience within the building, operation and servicing of energy vegetation.

Fewer cuts are coming from the Process Industries and Drives Division, and most of them will probably be in Germany. Siemens cited the “scenario within the commodities business … the place clients’ willingness to take a position stays at a low degree” and the rise in competitors as a result of low-cost producers as elements affecting that division.

“Whether in mining, metal manufacturing or shipbuilding, demand for giant electrical motors and turbines has fallen significantly due a scarcity of capability will increase by course of business clients,” the press launch states. “A restoration in these fields will not be anticipated within the foreseeable future. This scenario has resulted in substantial overcapacities within the present manufacturing panorama for these applied sciences.”

Siemens introduced in September 2014 it could purchase Dresser-Rand Group Inc., a Houston-based oil subject tools firm, in a deal valued at $7.6 billion together with the idea of debt. At the time, Siemens additionally introduced that Houston would develop into the headquarters of its oil and fuel enterprise.

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In addition, different Siemens companies have a number of areas within the Houston space, together with Siemens Energy Inc., Siemens Industry Inc. and Siemens Building Technologies.

Source: www.bizjournals.com

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