As the global economy teeters, companies continue to announce lay offs in order to cut costs. Siemens (OTCPK:SIEGY), (OTCPK:SMAWF) recently announced plans to dismiss hundreds of workers at a gas turbine parts and components center in Houston, TX due to weak global demand:
German engineering firm Siemens plans to dismiss about 200 workers at a gas turbines parts and components service center in Houston, Texas, next year due to weaker global demand, a company spokesman said on Tuesday.
The Texas operation will close between late 2019 and 2020, according to the spokesman, who called the decision “difficult.”
In a letter to the Texas Workforce Commission, Siemens also pointed to overcapacity within its network.
The cuts in Houston come on the heels of 2,900 announced job cuts in Germany to help boost Siemens’ competitive position in its Power and Gas segment. General Electric (GE) and Mitsubishi (OTCPK:MHVYF) also face oversupply and declining sales of gas turbines.
New technologies are disrupting traditional business models. Companies that used to be on the cutting edge must continue to adapt. Alternative energy sources continue to disrupt the power generation market. Now Siemens, GE and Mitsubishi must adapt. Sales of large gas turbines for power generation have been in free fall, and recently hit a 23 year low. As countries continue to shift towards clean energy the slide will likely continue. Read more: