MUNICH, Germany – Siemens said on Monday that it was seeking to temporarily close factories world-wide connected with its power and gas division in order to cut costs.
A global shift to renewable power sources has dragged down sales at its hallmark power and gas unit, which supplies turbines to traditional fossil fuel-powered plants.
“The factory closures are part of a complete portfolio of measures, that include travel costs, sponsoring, costs associated with participating on trade fairs and investments,” the company said in a statement.
The company said it was responding to “an ongoing unprecedented downswing in the market for power generation.”
The temporary factory closures will affect around 30,000 workers, including engineers, sales staff and production workers in the turbine business.
The company said its goal was to improve the cost position of the power and gas unit.
Siemens reports second-quarter results on Wednesday.