Siemens Announces Layoffs as Slump in Oil Price Hurts Sales

New York Times ^ | MAY 7, 2015 | JACK EWING

[thackney]

Siemens, the German industrial giant, said on Thursday that it would cut 4,500 jobs as it reacts to a slump in oil prices that has eroded its sales of equipment to the energy industry.

Lower oil prices have generally been a boon to the eurozone economy, freeing up cash that consumers can spend on other things. But in the case of Siemens, the effect is the opposite because of its large business supplying producers of oil, gas and electricity.

Siemens said it needed to cut jobs and reduce costs because of “the persistently difficult environment in the global power generation market,” which the company said included “regulatory changes, massive price erosion, aggressive competitors and regional overcapacities.”

The job cuts bring the total number of layoffs this year to almost 12,000 out of a global work force of about 340,000, or a reduction of about 3.5 percent. Roughly half of the latest round of cuts will be in Germany, where about one-third of all Siemens employees are based.

Objections from labor representatives, who by law have half the seats on the supervisory board, prompted the company to cut about 400 fewer jobs over all in Germany than had previously been planned.

Siemens, based in Munich, also said that net profit in the first three months of the year more than doubled, to 3.9 billion euros, or about $4.4 billion. But the increase came from selling assets, including a maker of hearing aids and a stake in a household appliance manufacturer.

Profit from Siemens’s industrial businesses, not including one-time gains from asset sales, fell 5 percent to €1.7 billion.

[thackney]

excerpted for New York Times

[bestintxas]

“Objections from labor representatives, who by law have half the seats on the supervisory board, “

This caught my eye.

Unbelievable that one would allow those with vested interests in a non-profit nature to have this much control.

May be a harbinger for what could happen here.

[GailA]

Then the idiots better start drilling in the USA and create more jobs. Gas prices were artificially inflated to begin with. Gas should not cost more than a gal of milk, or near the cost of a loaf of bread.

[bestintxas]

“Then the idiots better start drilling in the USA and create more jobs. Gas prices were artificially inflated to begin with. Gas should not cost more than a gal of milk, or near the cost of a loaf of bread.”

thank the govt for the taxes on a gallon of gas. http://www.eia.gov/tools/faqs/faq.cfm?id=10&t=10

This type of gouging does not apply to milk.