Handelsblatt Exclusive

Sources: Siemens To Cut Fewer Jobs

Siemens CEO Joe Kaeser Source DPA 44124086
Siemens CEO Joe Kaeser is restructuring the engineering giant.
  • Why it matters

    Why it matters

    Siemens needs to make its engineering operations more profitable to keep up competition with archrivals General Electric and ABB.

  • Facts

    Facts

    • Siemens’s energy business has suffered from low European demand for fossil fuel power generation machines.
    • Germany and other European countries favor investments in renewable energy production, such as solar and wind power.
    • Siemens CEO Joe Kaeser has been reorganizing the group and cutting jobs to lift profitability.
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    Audio

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Siemens, Germany’s leading engineering group, will cut fewer domestic jobs than previously expected thanks to new orders for its energy machinery, such as gas power plants, people familiar with the matter told Handelsblatt.

The Munich-based company, which has been restructuring since the chief executive, Joe Kaeser, took the helm in August 2013, announced in May that it planned to cut about 2,200 jobs in Germany and 4,500 worldwide.

But the number of German layoffs is now expected to be less than 2,000, officials in job negotiations at several Siemens locations in Germany told Handelsblatt. Siemens and metal worker’s union IG Metall declined to comment.

“On the one hand, compromises are always reached in these negotiations,” a person familiar with the job cuts told Handelsblatt, noting that both sides were making concessions. “In addition, there have already been some improvements in the order situation.”

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