Siemens to Cut Another 4,500 Jobs Amid Oil Prices Downturn

Germany-based Siemens AG will reduce overhead costs by 1 billion euro ($1.1 billion) and cut another 4,500 jobs worldwide in 2015.

MOSCOW (Sputnik) — Germany-based Siemens AG announced an intention to cut another 4,500 workplaces to reach targets set for the year amid difficult environment in the global energy market, the company said in a statement Thursday.

"The reorganization will affect about another 4,500 jobs worldwide, of which some 2,200 are currently expected to be in Germany," the company said in a statement published on its website.

The decision will reduce overhead costs by 1 billion euro ($1.1 billion) in 2015, according to the company.

"These measures are being taken in response to the persistently difficult environment in the global power generation market," the company explained.

Siemens cited "massive price erosion, aggressive competitors and regional overcapacities" as the main reasons for the upcoming reorganization.

In February, the strategic realignment triggered the company to announce the layoff of about 7,800 jobs in the company worldwide, with around 3,300 work places in Germany. After the consultations, the amount of job cuts in Germany was reduced to about 2,900.

Siemens, the largest engineering company in Europe, is highly dependent on situation in the global energy market because of supplies to energy producers.

In 2014, global oil prices almost halved due to concerns about oversupply. Despite the relative stabilization of prices, the aftermath of the downturn is still affecting energy-reliant companies and nations.