Saturday 24 February 2018

Job losses possible at Siemens' Irish arm as 7,800 to go worldwide

Joe Kaeser, chief executive of Siemens AG. Photographer: Guenter Schiffmann/Bloomberg
Joe Kaeser, chief executive of Siemens AG. Photographer: Guenter Schiffmann/Bloomberg
Gavin McLoughlin

Gavin McLoughlin

Siemens isn't ruling out job losses at its Irish arm as the engineering giant embarks on a worldwide restructuring programme that will see it shed around 7,800 jobs.

Almost 3,500 of the cuts will come in Germany but the company said it wouldn't give a breakdown of where the rest of the cuts will come as it wants to speak to unions first.

That process is due to begin within weeks, a Siemens spokesman told the Irish Independent.

Siemens employs 530 people in Ireland across offices in Dublin city centre, Swords, Co Dublin, and Letterkenny, Co Donegal.

The German multinational has had a presence here since the 19th century and has been involved in infrastructure projects including the Shannon hydroelectric power scheme.

The company hopes to generate savings of €1bn which it will invest in innovation, productivity and growth initiatives.

The move is part of an overhaul unveiled in May that will help Siemens "to get our company back on a sustainable growth path and close the profitability gap to our competitors", chief executive Joe Kaeser, below, said.

"Our strategic reorientation has enabled us to considerably streamline our organisation and remove entire intermediate levels. These steps will bring our businesses closer to our customers and make us significantly faster," Mr Kaeser said.

The restructuring is designed to streamline Siemens' portfolio and focus it on the areas of electrification, automation and digitalisation.

It recently agreed to sell a hearing aid business for €2.15bn plus add-ons. But Mr Kaeser has been adding to the portfolio as well.In September, Siemens announced an agreement to acquire US oil drilling equipment maker Dresser-Rand for $7.6bn (€6.7bn) a move that has come under fire as the price of oil plummets.

In its last fiscal year Siemens posted revenues of €71.9m, down from €73.4m the previous year.

Irish Independent

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