| 12.7°C Dublin

Energy loss: Siemens to cut 7,800 gas and power jobs 

Transition to green energy hitting fossil fuel firms

Close

Green switch: A cyclist exits the Siemens Energy AG gas turbine factory in Berlin, Germany. The firm will cut roughly a sixth of workers from its gas and power division. Photo: Liesa Johannssen-Koppitz/Bloomberg

Green switch: A cyclist exits the Siemens Energy AG gas turbine factory in Berlin, Germany. The firm will cut roughly a sixth of workers from its gas and power division. Photo: Liesa Johannssen-Koppitz/Bloomberg

Green switch: A cyclist exits the Siemens Energy AG gas turbine factory in Berlin, Germany. The firm will cut roughly a sixth of workers from its gas and power division. Photo: Liesa Johannssen-Koppitz/Bloomberg

Siemens Energy plans to cut roughly a sixth of workers from its gas and power division in the latest sign that the worldwide shift to green energy is upending fossil fuel businesses.

The company will eliminate 7,800 jobs by the end of its 2025 financial year, including about 3,000 positions in Germany and 1,700 in the US. Roughly three-quarters of the reductions will be of management and sales roles.

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

The gas and power division employs about 46,000 workers building and maintaining turbines used in gas and coal-fired power stations – plants that are in the crosshairs of governments looking to make good on their climate targets.

Low-cost renewable energy also has undermined the economics of burning coal and gas, leading to lower run times for some plants and the shuttering of others.

Economists expect the addition of renewable energy job to offset losses linked to fossil-fuel business, although estimates vary. One study by the Institute for Economic Structures Research in Osnabrueck, Germany, estimated that around 120,000 jobs that otherwise wouldn't exist were created by Germany's green transition.

The firm's downsizing is in addition to a €300m cost savings target that it already has announced.

Siemens Energy shares slipped 0.3pc to €31.16 in Frankfurt trading. The stock has climbed 47pc since a late-September listing following its spinoff from Siemens AG.

Business Newsletter

Read the leading stories from the world of business.

This field is required


Most Watched





Privacy