Siemens is facing a radical reconstruction
Now it is so but because – the whittling away, did not want to talk about the Joe Kaeser a year ago. Downsizing announcement in slices: Now 4500, in February 7800 and last October 1200 points. Summasumarum 13,500 jobs that are at stake. The Siemens CEO acknowledges and cleans up. The extent of the biggest modifications in the company’s history comes increasingly to the fore, which is evidence of the structural deficits compared to the competition with innovation weaknesses and partly on the market over-developed products.
Author: Rüdiger Köhn, economics correspondent based in Munich
From operational successes are untraceable. The operating margins continue to decline. The results are whitewashed by lush profits from the sale of assets in the amount of 3.2 billion euros. Since there is only a weak justification of Kaeser which a transition year is 2015 and the actual results of the conversion will be on display in 2016. And it is no consolation that competitors such as Alstom or ABB also have problems or archrival General Electric Group’s equally strong circulates. Siemens is still far from catching up again, as it is the declared goal of the Siemens boss.
Certainly, it lacks the Fortune for hard labor, because the economic environment has changed in a year, in particular in the energy business dramatically and thus the Group restructuring stones are placed in the way. An apology is not. After all, have five of eight divisions in the second quarter earnings decline on. Main reason for standing up for grabs 4500 jobs, of which 2,200 employees in Germany, can be seen in an omission which especially in energy technology, and there in the power generation sector, have been revealed.
In the power of the trend was sleepily towards smaller, decentralized power plants for a long time. We focused too much on the development of large, more efficient and thus more environmentally friendly gas turbines. They will no longer be sold in Europe. Even more: The most fuel-efficient power plant in Europe in Irsching will even be parked. Result of insanity of a misguided energy policy in Germany.
The turbine business is symptomatic of how difficult it falls to the Group, back to catch up. The problems Kaeser had recognized earlier. Therefore, the reduction of 1,200 positions in the Power & amp already in October last year; Gas announced. The pressure grew to reduce costs in order to increase the competitive strength. This was before the price of oil fell and the investment in the oil and gas processing industry have been greatly reduced, so that the business in which Siemens now intends to step up the expensive purchase of American outfitter Dresser-Rand even.
Siemens is not only fighting in and with the market, but also with himself. In February 2900, the Group now has announced the elimination of 7,800 jobs, including one planned 3300 held in Germany. These measures concern, unlike the program has now been adopted, the management. As gears engage each other but the two programs. After recovering the operational strength presupposes speed and flexibility to respond appropriately to market changes. But that Siemens has gone off in a long time. Therefore Käsers suggestion to streamline the company and taking out hierarchical structures. Too much Germany centered sales organization of a company that denies 85 percent of its sales abroad should be placed closer to the market.
A frightening number suggests the inner state: About 30 percent of Siemens’ sales are accounted for by low-profit businesses. For most of (revenue share 20 percent) wants to bring its own power-house back into shape Kaeser. The Siemens employees had nerves and mentally a tabula rasa not coped with the push-off barely profitable businesses. Only a small part is sold or introduced into partnerships.
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After all the measures resulting from this restructuring threatened jobs in the number 4500 have already taken into account. “With the initiation of these measures, the structural reorganization of the company has been completed on the merits.” Once again, Joe Kaeser disclaims with this statement far from the window. Past experience shows that there were always surprises. A year ago, spoke only the wildest speculations assume that once jobs would be lost in the current extent in Germany industry icon.
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