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Siemens to cut 1,400 jobs in Germany

Industrial conglomerate Siemens said Tuesday it would slash 2,700 jobs worldwide at its gas and power unit, including 1,400 in its home country Germany, "over several years".

Published: 19 June 2019 08:31 CEST

Siemens to cut 1,400 jobs in Germany

A man helps build a gas turbine at Siemens in Berlin. Photo: DPA

The majority of jobs cut in Germany will be in Berlin and Erlangen in Bavaria.

The division – set for an independent stock market flotation in 2020 – will “require further savings of €500 million”, Siemens said in a statement.

“Measures are required in order to reduce costs (and) adjust to the declining numbers of major projects,” the company added.

Around 7,000 jobs cuts and site closures had already been announced at the
unit.

“Siemens will now begin consultations with the relevant employee representatives and then implement the planned measures… in a way that is socially responsible,” the company said.

'Unimaginative'

Still, the IG Metall union – the largest in Germany with over 2.2 million members – called the job cuts “unimaginative,” saying other solutions could be found.

“In a market that is growing in the long term and has long cycles, the short-term reduction of employees is not the best solution, especially in view of the increasing shortage of skilled workers,” the union said in a statement.

SEE ALSO: How Germany plans to fight worker shortage with new immigration law

Gas and power brings together Munich-based Siemens' oil and gas, conventional power generation, power transmission and related services businesses.

With 64,000 employees in 80 countries, it booked sales of €12.4 billion in 2018 and €377 million in profit, including with large contracts in Egypt and Iraq.

But its profitability is declining year on year, due to falling demand for power plant equipment as a result of the global shift from fossil fuels to renewable energy.

In 2018, its margin was just 3.8 percent, while Siemens' group-wide target is between 11 and 15 percent.

The group has in recent years spun off its medical devices unit, known as Healthineers, its wind turbines division Gamesa and lightbulb maker Osram.

SEE ALSO: Siemens eyes major revamp as energy woes sap profit

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Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions.

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds.

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local.

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with.

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