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Siemens plans thousands of job cuts in Power & Gas: Manager Magazin

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Siemens plans thousands of job cuts in Power & Gas: Manager Magazin

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FRANKFURT (Reuters) – Siemens <SIEGn.DE> is planning an overhaul of its Power & Gas division that will include the closure or sale of some sites and result in thousands of job cuts, German monthly Manager Magazin reported, citing company sources. The Power and Gas business is struggling with a global shift away from using the large electricity generating turbines which Siemens specializes in. The company reported a 41 percent drop in orders and a worse than expected 23 percent fall in profits in its fiscal third quarter which ended in June. Manager Magazin said on Thursday that Siemens could shut or sell up to 11 of its 23 Power & Gas sites around the world, including a generator factory in the eastern German city of Erfurt. Management will present the plan to labour representatives in early November, it said. Power & Gas, excluding its services business, has 30,000 employees worldwide, of which 12,000 are based in Germany. Siemens said it was continually thinking about its strategic direction, which could include consolidation of some businesses, but declined to comment directly on the Manager Magazin article.

(Reporting by Maria Sheahan; Additional reporting by Irene Preisinger; Editing by Ludwig Burger, Greg Mahlich)
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