German engineering giant Siemens has said it would need to shut down its power and gas sites worldwide for a whole week soon as it aims to bring down rising costs amid an "unprecedented market downswing."
German industry heavyweight Siemens announced Monday it would close its power and gas sites around the globe for a week.
The drastic move came as global demand for the company's huge gas turbines kept plummeting in the face of stronger competition from renewable energy, prompting Siemens to embark on a cost-cutting drive after announcing nearly 7,000 job cuts last year.
"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," the firm said in a statement.
It added that the stoppages would affect "all PG locations worldwide within the current quarter" and last for seven days.
Changing energy landscape
Siemens explained the move was part of wider efforts to slash costs at the beleaguered division employing 47,000 people globally and accounting for 18 percent of the company's overall revenues.
Further measures included the reduction of travel expenses as well as the reduction of costs for sponsoring or participation in trade shows and capital investments.
Back in January, Siemens CEO Joe Kaeser said he was convinced that there would continue to be a global market for gas turbines, but admitted it would be smaller, with the focus shifting away from Europe.
German trade unions have been angry about the company's planned job cuts given the firm's robust overall financial health. But executives have insisted the layoffs are necessary to respond to the changing energy landscape.
hg/aos (AFP, dpa)