At present, the market is in a difficult situation. It has led to a job crisis with an increase in unemployment. The market was already facing a recession when a global pandemic came into being. It resulted in many businesses to shut down and over a thousand job loss. Currently, the youth and the ones willing to work are looking for jobs to sustain their lives. But industries are looking for cost-effective methods and are only focusing on profit maximization. Hence, it has increased the overall competition of the rat race.
What is Siemens Energy up to?
Like any other company in current times, Siemens Energy is also looking for a cost-effective approach. They want to produce more output with the minimum input. They really cannot stop the supply of raw materials for their production. Hence, they are planning to cut off the manual labours.
What is Siemens Energy’s plan?
According to a recent news statement, the company, which is known for its energy technology, plans to let go more than a thousand of its employees. Presently, they are functioning with over 90,000 employees globally. They are planning to let go of 7800 jobs which they have divided as:
• 3000 jobs in Germany
• 1700 jobs in the United States of America
• 3100 jobs in other countries
What are the main reasons for this job shed?
The global economy is in a difficult position. The market is running on a loss. Siemens Energy has planned to make the deduction in employees by the end of the 2025 financial year. They have targeted to complete the major part of the reduction by the 2023 financial year. It is all due to:
• Optimised processes
• Leaner structures
• Reduction of overcapacities
• Portfolio adjustments
They are precisely targeting their job sector in the gas and power department for the maximum part of the reduction. At the same time, only three-quarter will be from other departments like management, sales and administration.
Is this a good idea?
It is the only solution the company has. From the energy technology company’s perspective, this is the best fit. However, it is a matter of concern for the employees whose livelihood depends on this job source. The Siemens Energy employees are not the only victim of jobless. It has been an issue ever since the recession has hit the world market, followed by the global pandemic. Unemployment is on the rise, and the hand’s of the market is tied.
They can only focus on their profit and holding their business. They do not have the luxury to think about their employees. This situation requires strategic planning. The only way the employees can make themselves immune from getting fired is by increasing their qualification.
As stated earlier, the rat race has been more competitive in recent times. It is not about who is the fastest, but who hold the most knowledge and has the most qualification. Only that person will survive this market situation. Industries and companies have no other option but to let go of labours or to get shut down.