Siemens Energy is cutting fewer jobs in Germany

Siemens Energy

According to information from the Handelsblatt, the downsizing is somewhat milder at the central locations of the power plant division.

(Photo: imago images / imagebroker)

Munich After a long dispute with the employee representatives, the job cuts at Siemens Energy are somewhat milder than originally announced. The Handelsblatt learned from negotiating circles that almost 2,600 jobs are now being cut in Germany. Originally, up to 3,000 jobs were supposed to be lost.

Siemens Energy boss Christian Bruch had announced the restructuring in February after a billion dollar loss in the past fiscal year. However, the negotiations with the employee representatives about the details of the cuts and a redundancy plan broke down. The dispute went to an arbitration board – a highly unusual process for the Siemens family.

But now there was still an agreement. According to information from the Handelsblatt, the downsizing is somewhat milder at the central locations of the power plant division. According to the districts, a good 600 jobs will be lost in Berlin and Mühlheim, 565 in Erlangen, 326 in Duisburg and 124 in Görlitz.

A company spokesman did not want to confirm the information in detail, but said: “We want and need a successful and profitable existing business and a continuous focus on future technologies.” Therefore, it is good that “we have now agreed on measures with the employee representatives are suitable for securing the competitiveness of Germany as a business location “. That is good for the company and the employees.

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Siemens Energy Supervisory Board Hagen Reimer from IG Metall said the negotiations were “exceptionally tough”. “In our estimation, this was partly due to the fact that the company was not ready to compromise.” He sees the agreement reached with mixed feelings, but “turned a lot and achieved a staggered implementation until 2025”.

Berlin is to manufacture the majority of the hydrogen electrolysers

According to information from the Handelsblatt in Berlin, there had been particular resistance. However, part of the component production is still to be relocated to Hungary.

In return, according to reports, Berlin will be awarded the contract for most of the production of the hydrogen electrolysers. Görlitz, among others, had hoped for this promising production. The final assembly of the electrolysers, with which hydrogen is produced, will then take place in Mühlheim.

In industry circles it was said that CEO Christian Bruch would achieve the restructuring goals set despite the somewhat milder job cuts.

The Siemens group had spun off its low-margin energy technology as Siemens Energy and listed it on the stock exchange. Bruch is struggling on several fronts: On the one hand, traditional business is tending to shrink because, in the age of the energy transition, there is less demand for large turbines than for decentralized solutions. In addition, there are also homemade problems at the wind power subsidiary Siemens Gamesa, which actually stands for the future of the Dax group.

More: “The management has to rework”: Siemens Energy increases pressure on wind power subsidiary