FRANKFURT (Reuters) - German industrials conglomerate Siemens is cutting or transferring to other countries more than 1,000 jobs at a unit making gear for oil drillers and mining companies, as low oil prices have depressed capital spending, a German daily reported.
Siemens was making the cuts because the Process Industries and Drives Division in Germany unit’s capacities were underutilized, Handelsblatt reported, citing industry sources.
Siemens, which has recently announced job-cutting measures as it battles to cope with subdued economic growth and weak demand from energy customers, declined to comment.
The price of oil has fallen around 70 percent since mid-2014, prompting oil exploration and mining customers to shelve orders for products such as the large drives made by Siemens’ Process Industries and Drives unit.
At its quarterly results presentation, Siemens Chief Executive Joe Kaeser acknowledged that the unit - much like the Power and Gas division - is struggling to cope with structural changes.
Reporting by Arno Schuetze; editing by Susan Thomas