Siemens, the biggest industrial manufacturing company in Europe is planning to undertake the layoff process in which it will let go around 6900 job positions across the world.
Most of these layoffs, which will count around 6100 will be in the field of power and gas, while rest of the positions will belong to process industries and power generation units.
The reason behind having this layoff is said to be the highly increased production and decreasing demands for huge power & gas turbines. Earlier the yearly demands for these products were used to be around 400 units but now it has fallen to 110 units a year. This is increasing the pressure of competition on the company.
Fifty per cent of the layoff will be done in Germany itself. The conglomerate is closing two units in the country in the beginning. Considering the global picture and spread of the company, it will be laying off 2% of its total employees across the world who are in the number of 3, 70,000.
Siemens is not the only company reframing its human resource and manufacturing programs. Its U.S. rival, General Electric Co. Is undergoing huge transformation too, as the market conditions are rapidly changing.
The decision is facing opposition from employees unions and trade unions across the nation.