BANGALORE: Giant engineering organization, Siemens, said that it would slash down 4,500 jobs globally as the company encountered a drop of 5 percent in the quarterly industrial profit. The German company has witnessed underperforming business in gas turbines thus announced to cut down 1 percent of the global workforce, reports Business Standard.  

The Munich-based company is dealing with difficulties in its power generation division worldwide which has been struck by price erosion, low demand and strong competition.  

The latest blow is expected to arrive in the coming months cutting 2,200 jobs in Germany alone whereas the energy division would meet a cut of 1,200 jobs.

As per the company’s Chief Executive, Jon Kaesar, Siemens is working on streamlining its portfolio by 2016 to catch up with the rival companies in profit making.

The company would undergo reconstructing expecting to turn around the underperforming operations and save up to $1.2 Bn. The plan would center to enhance profitability in the areas of, medical equipment, energy and industrial digitalized systems.

However, the reconstructing plan looks difficult as the company has to come out even with both the investors and the labor representatives.

The industrial business is estimated to earn a profit of 15 percent compared to the profits in 2014.

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