Blaming a slowdown in capacity expansion investments within the process industry, Siemens AG announced job cuts in its Process Industries and Drives (PD) division in a Nov. 16 press release. Globally, the firm is cutting some 6900 positions in the PD division and in its Power and Gas division.
“Whether in mining, steel production, or shipbuilding, demand for large electrical motors and generators has fallen considerably due to a lack of capacity increases by process industry customers,” the company said in its release. “A recovery in these fields is not expected in the foreseeable future.”
About 760 PD jobs in Germany will be impacted by the move, the majority coming from a generator factory in Berlin. No plans are afoot to close its location in Germany’s capital, but the firm said it will shift its priorities there to focus on R&D, engineering, service and sales.
Siemens said its reductions will aid the firm in increasing competitiveness and noted that it intends to invest heavily in research and development capabilities in 2018.