Siemens Energy, the company handling the Presidential Power Initiative which is expected to jerk up the country’s power generation to 25,000 megawatts by 2023 has announced the plan to cut 7,800 jobs in its Gas and Power segment by 2025.
The company is however still waiting for the Nigerian Government to give it the letter that will spell out the responsibilities of the company and the government on the project. Ministry of Power sources said the letter may be ready on or before the end of February
The action of the company is part of its move to reduce costs and reposition itself in a changing energy market.
Siemens Energy, has made the reduction of its material expenses a high priority and the majority of reduction measures are related to those costs. However, optimised processes, leaner structures, the reduction of overcapacities and portfolio adjustments will result in the reduction of approximately 7,800 jobs around the world in the Gas and Power segment – around three-quarters of which will be made in management, administration and sales.
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According to the company’s statement, the measures are designed to improve competitiveness by enhancing the long-term cost structure. The measures designed to optimise the company’s portfolio range from cost reductions related to external service providers, purchasing and logistics, to streamlining the IT landscape.
Speaking with Bloomberg, Christian Bruch, chief executive officer at Siemens Energy AG, emphasised the challenge they are facing to balance the need to keep jobs safe with maintaining profitability in declining markets, while coping with their exit from coal.
Bruch said: “Because of the changes in the energy market, we have areas where we do not earn money and we need these financial strands to invest in new technologies to really drive the transformation.” The proposed measures impact approximately, 3,000 in Germany, 1,700 in the United States and 3,100 at other locations around the world
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