Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
On 9 March 2016, Siemens, German electronics and electrical engineering company announced plans to cut up to 2,000 jobs in Germany by the end of 2018. Affected sites are located in Nuremberg (750), Ruhrstorf (700), Bad Neustadt/Saale (350), Erlangen (150) and Berlin (30).
Siemens has been criticised for the job cuts by employee representatives as the company achieved a reasonable profit in 2015. According to the corporate group however redundancies are necessary as the company wants to become more competitive in the area of Process Industry and Drives (PD). That branch is suffering from low demand, overcapacities and a tougher competition from Asia due to low oil prices. Therefore, as the company argues, Siemens has to concentrate its business in Europe and bundle product lines. In return, Siemens plans to invest in research, development, production and sales where hereinafter new jobs will be created.
Dismissals due to operational reasons are to be avoided. An alternative option could be partial retirement with the management emphasising the importance of socially acceptable redundancies.
These are the third job cuts at Siemens since CEO Kaeser took office. The restructuring programme is the company's largest since 1990. However, several restructuring programmes have been put in place over the past years (see 01.2012, 06.2012, 09.2012, 10.2013, 02.2015)
Siemens employs about 46,000 staff worldwide in the area of electric motors including around16,000 in Germany.
Update: 27/09/16:
On 27 September 2016, Siemens announced that they finalised negotiations with employee representatives. The social plan foresees to cut 1,700 jobs by the end of September 2020. The new figure amounts to 300 jobs cut less. The period for cutting jobs was prolonged by almost two years. The affected sites are Nuremberg (590), Ruhstorf (600), Bad Neustadt/Saale (330) and Erlangen (130). However, there was no information available where the 50 other job cuts will take place and if the Berlin site is still affected.
As announced previously, Siemens wants to avoid direct dismissals. The company found other solutions like job offers in other positions within Siemens, if it is necessary with further training measures. The company also offers severance payments, partial retirement and placement with a transfer agency, which was created for the next 24 months.
Eurofound (2016), Siemens, Internal restructuring in Germany, factsheet number 86889, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/86889.
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