A struggling power generation market has forced Siemens to temporarily shut down its Power & Gas operations around the world. Siemens also said it is re-examining its Power & Gas strategy.
Over the past few years, as more people look to renewable energy, large turbines are becoming more unpopular. “Against the background of an ongoing unprecedented downswing in the market for power generation equipment, the power and gas division (PG) is planning temporary shutdowns,” Siemens said in a press release. The release also confirmed the shutdown would be for “all PG locations worldwide within the current quarter,” and the shutdown would end after seven days.
Last November, tEDmag.com reported Siemens would be cutting 6,900 jobs, with most of the cuts coming in the Power & Gas area. Siemens Power & Gas has about 30,000 employees worldwide.
“The shutdowns are part of a comprehensive package of measures, which also includes issues such as travel costs, sponsoring, participation in trade fairs and investments,” Siemens said in a statement. Labor unions in Germany are upset about the job cuts, claiming the company is doing very well financially.
But, Siemens reported its first-quarter earnings results were not strong, with profits dropping by 50% and profit margin shrinking from 12% to 7.6%. Analysts have projected an 11-15% profit margin for the quarter.
Siemens is due to publish second-quarter results on Wednesday, May 9.Tagged with Biggest News, Siemens