Siemens Energy plans to slash 7,800 jobs over the next four years with an aim of reducing costs in a rapidly changing global energy market, the German group said Tuesday.
It said the measures are aimed at improving the company's "competitiveness by enhancing the long-term cost structure."
"Optimized 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," it said in a statement.
In total, about one employee in 12 will be affected in a group that employs some 90,000 people.
Around 3,000 jobs would be eliminated in Germany, 1,700 in the United States and 3,100 in other locations.
Around three-quarters of the cuts, planned by the end of the 2025 financial year, will be made in management, administration and sales.
"The energy market is significantly changing, which offers us opportunities but at the same time presents us with great challenges," CEO Christian Bruch said.
"With this program, we want to regain our competitiveness and financial strength to shape the energy world of tomorrow."
The COVID-19 pandemic has also become another factor significantly impacting the global energy demand, thus the companies and energy market in general. Decreasing demand with the worldwide lockdowns and flight restrictions pushed energy companies toward taking new precautions. Recent research expects demand to grow by 7% this year after the initial COVID-19 shock.