Siemens Energy to Cut Around 7,800 Jobs in Gas-and-Power Unit by End of Fiscal Year 2025

By Giulia Petroni

Siemens Energy AG said Tuesday that it plans to cut around 7,800 jobs in its gas-and-power segment by the end of fiscal 2025.

The German energy company said it will cut approximately 3,000 employees in Germany, 1,700 in the U.S. and 3,100 at other locations worldwide. Around three-quarters of the cuts will be made in management, administration and sales.

"The energy market is significantly changing, which offers us opportunities but at the same time presents us with great challenges," said Chief Executive Officer Christian Bruch.

Reductions are planned by the end of fiscal 2025, with a large part scheduled by the end of fiscal 2023. The company said it aims to reach an agreement with employee representatives as soon as possible.

As previously announced, Siemens Energy plans to reduce costs by a minimum of 300 million euros ($362.8 million) in the gas-and-power segment in order to optimize its portfolio and reduce costs. The objective is to achieve an adjusted earnings before interest, taxes, depreciation and amortization margin of 6.5% to 8.5% before special items by 2023.

It also reiterated that estimated restructuring costs will amount to a mid-to-high triple digit million amount for fiscal years 2020 to 2023.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

February 02, 2021 03:01 ET (08:01 GMT)

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