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Siemens Will Cut Another 2,700 Jobs; GE Announces Cuts in Switzerland

June 19, 2019

Siemens on June 18 said it would cut 2,700 jobs from its Gas and Power division, on top of 10,400 positions the German engineering firm last month said it would jettison as part of cost-cutting measures.

The Siemens’ announcement comes one day after U.S.-based rival GE said it would cut 450 jobs at two of its manufacturing sites in Switzerland.

Siemens in May said it would spin off and give up its majority stake in its Gas and Power unit, which includes its power generation, transmission, oil and gas, and related services businesses. The company in that announcement, which it said is part of its Vision 2020+ strategy, also said it was transferring its 59% stake in Siemens Gamesa Renewable Energy (SGRE) to the new business.

Investors have cheered Siemens’ restructuring, with the company’s stock gaining about 9% this year.

Lisa Davis, head of the Gas and Power division, in a statement Tuesday said, “The planned measures will help us create more opportunity for growth and the security that comes from being a competitive player in the energy market.”…

GE Tops MHPS, Siemens in 1Q Turbine Orders

May 15, 2019

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General Electric, Siemens, and Mitsubishi Hitachi Power Systems confirmed their gas turbine sales for the year’s first quarter, with GE taking the top spot with six orders for its advanced HA-class unit.

The three companies on May 14 confirmed the numbers to Reuters. GE, which had no sales in the same period a year ago, said its total includes three units purchased by Japan’s Tokyo Electric Power Co. Those units were not included in the company’s first-quarter earnings report, but were noted in the industry’s closely studied “McCoy Power Report,” which was published Tuesday. McCoy has not commented on the report.

Sources told Reuters, and the companies confirmed, that MHPS had five turbine orders in the first quarter, while Siemens had four.

The three companies have struggled to book turbine orders in recent years as the power industry moves toward renewable generation resources such as wind and solar. Each company has rolled out new, more-efficient models in an effort to gain market share.…

BREAKING: Siemens Abandons Power and Gas Business

May 7, 2019

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Siemens will spin off and give up its majority stake in its lucrative Gas and Power division—comprising its conventional power generation, power transmission, oil and gas, and related services businesses—and transfer its current majority 59% stake in Siemens Gamesa Renewable Energy (SGRE) to the new business.

The company’s supervisory board announced the spinoff on May 7 as part of its Vision 2020+ strategy concept. The board said the move would help Germany-based Siemens meet medium-term growth and profit targets by “clearly focusing its portfolio on dynamic growth markets and efficiency gains.”

The Gas and Power spinoff and transfer of SGRE stake would create a new “major player on the energy market” with a business volume of €30 billion and over 80,000 employees, Siemens said. The carveout will give the new company “complete independence and entrepreneurial freedom,” it said. Siemens said the new company will have a stock exchange listing by September 2020.

The move will create a “powerful pure play in the energy and electricity sector with a unique, integrated setup – an enterprise that encompasses the entire scope of the energy market like no other company,” explained Joe Kaeser, president and CEO of Siemens AG.…

Siemens, Mitsubishi Discuss Merger of Turbine Units

March 22, 2019

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A German business magazine reports that Siemens is exploring options for its struggling gas turbine business, and could look to form a joint venture with Japan’s Mitsubishi Heavy Industries (MHI). Manager Magazin on March 21 said Siemens “wants to accommodate the large turbine business of the Japanese Mitsubishi Group and in the future hold only a minority.”

Reuters, citing two sources, on Thursday reported that Siemens wants a plan in place by its capital markets day for investors on May 8. The sources reportedly told Reuters that talks between Siemens and MHI “had intensified recently,” although Siemens reportedly is looking at other options for the business, including keeping it.

Manager Magazin on Thursday reiterated, as it has reported previously, that Siemens and MHI could combine their large gas and steam generators’ businesses. The magazine said Siemens CEO Joe Kaeser began talks with MHI in 2017 about a joint venture, with the intention to merge the companies’ turbine operations, with Siemens holding a minority stake.…

Iraqi Official Casts Doubt on Deals With GE, Siemens

February 11, 2019

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Multibillion-dollar energy deals that both Siemens and General Electric (GE) signed with the Iraqi government last year may not come to fruition, according to the country’s electricity minister.

The Financial Times on February 10 reported that Luay Al-Khatteeb, who took his post late last year after the deals were brokered, told the newspaper, “I don’t have financial allocations or the processes available at hand, it doesn’t allow me to cherry-pick the right consultancies to deal with these multibillion-dollar deals. The bureaucracy that I inherited is . . . illogical.”

GE in October 2018 agreed to a $ 15 billion deal to provide 14 GW of power generation projects to Iraq, including 1.5 GW as early as this summer. The agreement, which was called “principles of co-operation” and is not binding, came after the Trump administration reportedly told Iraqi officials that diplomatic relations with the U.S. would be threatened if Iraq pursued that deal with Munich, Germany-based Siemens, instead of Boston, Massachusetts-based GE.…

Siemens Cutting 200 Jobs at Texas Service Center

December 12, 2018

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Siemens on December 11 said it would lay off about 200 workers at a gas turbines parts and components service center in Houston, Texas, sometime in late 2019 or early 2020. A company spokesperson made the announcement Tuesday, saying the cuts are due to weak global demand for the company’s turbines.

Siemens in a statement said the decision was “difficult.” The company, in a letter to the Texas Workforce Commission, also said the layoffs were partly due to overcapacity within the company’s network.

Siemens in September said that it would cut 2,900 jobs in Germany to boost the competitiveness of its Power and Gas and Process Industries divisions. The company at the time said the cuts would save about $ 590 million.

Lisa Davis, member of the Managing Board of Siemens AG, in a statement at the time said, “The market for fossil power generation has contracted substantially. Against the backdrop of this structural change, the agreement we’ve reached [with the company’s unions] is critical to improving our competitiveness.”…