MUNICH (Reuters) - Engineering group Siemens (SIEGn.DE) is cutting 1,200 jobs at its German energy business on weak demand for power plant equipment and maintenance, radio station Bayerischer Rundfunk reported on Wednesday, citing company sources.
Siemens confirmed that it planned “personnel adjustments” at the business but declined to say how many jobs would go because it wants to negotiate with workers first.
Siemens unveiled a major corporate overhaul this year after lagging big competitors like General Electric (GE.N) and Philips (PHG.AS) in terms of innovation and profitability and ousting its chief executive in a boardroom battle.
Lisa Davis, who was named the new head of Siemens’ energy business as part of the overhaul, told a German newspaper earlier this month that the group could shut some factories because it expects low profit margins at the division in the next couple of years.
Siemens, Germany’s second-biggest company by market value, also said workers at its baggage handling and postal automation unit also faced cuts. Siemens called off a planned sale of the unit in June.
Reporting by Jens Hack; Writing by Maria Sheahan, editing by Keith Weir