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Press Release18 June 2019Siemens AGMunich
Siemens' Gas and Power continues focus on productivity and competitiveness
At its Capital Market Day on May 8, Siemens announced that, against the backdrop of a challenging market environment, GP will – in addition to ongoing programs – require further savings of €500 million in order to significantly improve its cost competitiveness. The additional savings will be enabled by the new setup of the GP Operating Company. Merging and rightsizing the different businesses will save €200 million. A further €100 million will result from the new regional setup. And the remaining €200 million will be achieved by optimizing support functions.
The plans, as they have now been presented, call for reducing approximately 2,700 jobs worldwide over the course of several years. Around 1,400 of these jobs are in Germany. Siemens will now begin consultations with the relevant employee representatives and then implement the planned measures, including requalification programs in the wake of the structural transformation of the industry, in a way that is socially responsible. As Siemens also highlighted at its Capital Market Day, the growth-oriented Vision 2020+ strategy concept will also be reflected in workforce development. Taking into account the efficiency-related workforce adjustments across all areas, including today's adjustments at GP, there will, accordingly, be a net increase of around 10,000 jobs worldwide within the same time period.
Since last years' reconciliation of interests with employee representatives focused on the power generation business (Power and Gas), the new measures primarily address the EPC projects business as well as the power transmission products and systems business. For the EPC projects business, measures are required in order to reduce costs, adjust to the declining numbers of major projects and enable the business to be more selective in the market, finding the right balance between volume and margin. For the power transmission products business, the markets for transformers and switching technology are burdened by excess capacities, requiring measures for optimizing cost structures and capacities at all locations. Doing so will help preserve the competitiveness of these locations. In addition, across the GP Operating Company, bundling and optimization has reduced the need for some of the services provided by support functions.
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Siemens Gas and Power (GP) is a global pacesetter in energy, helping customers to meet the evolving demands of today's industries and societies. GP comprises broad competencies across the entire energy value chain and offers a uniquely comprehensive portfolio for utilities, independent power producers, transmission system operators and the oil and gas industry. Products, solutions and services address the extraction, processing and the transport of oil and gas as well as power generation in central and distributed thermal power plants and power transmission in grids. With global headquarters in Houston in the U.S. and more than 64,000 employees in over 80 countries, Siemens Gas and Power has a presence across the globe and is a leading innovator for the energy systems of today and tomorrow, as it has been for more than 150 years.
Siemens AG (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for more than 170 years. The company is active around the globe, focusing on the areas of power generation and distribution, intelligent infrastructure for buildings and distributed energy systems, and automation and digitalization in the process and manufacturing industries. Through the separately managed company Siemens Mobility, a leading supplier of smart mobility solutions for rail and road transport, Siemens is shaping the world market for passenger and freight services. Due to its majority stakes in the publicly listed companies Siemens Healthineers AG and Siemens Gamesa Renewable Energy, Siemens is also a world-leading supplier of medical technology and digital healthcare services as well as environmentally friendly solutions for onshore and offshore wind power generation. In fiscal 2018, which ended on September 30, 2018, Siemens generated revenue of €83.0 billion and net income of €6.1 billion. At the end of September 2018, the company had around 379,000 employees worldwide. Further information is available on the Internet at www.siemens.com.
Siemens AG (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for more than 170 years. The company is active around the globe, focusing on the areas of power generation and distribution, intelligent infrastructure for buildings and distributed energy systems, and automation and digitalization in the process and manufacturing industries. Through the separately managed company Siemens Mobility, a leading supplier of smart mobility solutions for rail and road transport, Siemens is shaping the world market for passenger and freight services. Due to its majority stakes in the publicly listed companies Siemens Healthineers AG and Siemens Gamesa Renewable Energy, Siemens is also a world-leading supplier of medical technology and digital healthcare services as well as environmentally friendly solutions for onshore and offshore wind power generation. In fiscal 2018, which ended on September 30, 2018, Siemens generated revenue of €83.0 billion and net income of €6.1 billion. At the end of September 2018, the company had around 379,000 employees worldwide. Further information is available on the Internet at www.siemens.com.
Contact
Alfons Benzinger
Siemens AG
Freyeslebenstr. 1
91058 Erlangen
Germany
91058 Erlangen
Germany
+49 (9131) 17-34649
Wolfram Trost
Siemens AG
Werner-von-Siemens-Straße 1
80333 Munich
Germany
80333 Munich
Germany
+49 (89) 636-34794