By Editors of Power Engineering
Siemens may be planning major cutbacks at its Power & Gas division, which could lead the company to shut or sell up to 11 of its 23 Power & Gas sites around the world.
Reuters reported the cutbacks would be due to slower demand for new coal and gas power stations in light of renewable energy growth. Word of the cutbacks came from “company sources” via German monthly Manager Magazin.
The source said that “various scenarios are being considered,” and that details of the changes have yet to be decided.
Additionally, Bloomberg reported Siemens could restructure its Process Industries and Drives business, which could also lead to job cuts.
Company officials said Siemens always thinks about its strategic direction, possibly including consolidation of some businesses, but did not say if specific segments were targeted. Siemens had previously reported weaknesses at both its Power and Gas and the Process Industries divisions. Siemens’ finance head Ralf Thomas had previously said the problems with its Power and Gas business is a structural rather than a temporary problem. In its most recent quarter, the division reported a 23 percent drop in its profits.