Germany’s Siemens Gutting Natural Gas Jobs Through 2025

Special to PGJ

Siemens Energy is cutting about 7,800 natural gas jobs until 2025, the company announced as part of its cost-saving initiatives.

The Siemens Energy Executive Board provided employee representatives details about its plans to reduce costs by at least $361 million (€300 million) in its Gas and Power segment, a company press release states.

“The measures are designed to improve the company’s competitiveness by enhancing long-term cost structure,” the release states.

The company plans to have an Adjusted EBITDA margin before special margins of 6.5 to 8.5% by 2023, the release said.

About three-quarters of the job reductions will be from management, administration and sales positions, according to the company. This includes 3,000 in Germany, 1,700 in the United States and 3,100 from other locations, the release states.

A large part of the reductions will be implemented by the end of 2023, according to the release.

“The energy market is significantly changing which offers us opportunities but at the same time presents us with great challenges,” said Siemens Energy CEO Christian Bruch said in the release. “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.”

Siemens also announced a net income of  $119 million (€99 million) for the first quarter of its fiscal year after a loss of $140.6 million (€117 million) in the first quarter of 2020.

The company’s gas and power revenue decreased 2.9% from Q1 of 2020, according to the report.

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