SIEMENS has announced it will lay off more than 1,000 employees at its Drive Technologies Division in Germany, in response to a decline in market volumes.
According to SIEMENS, an upcoming change in technology for Low Voltage Motors has forced it to reorganise the production structure at the division.
Siemen’s Drive Technologies Division currently manufactures standard low-power low-voltage motors for the European market, mainly in Mohelnice, Czech Republic, and, to a much less extent, in Bad Neustadt, Germany.
The company claims the introduction of the next generation of energy efficient motors will make it necessary to invest in assembly lines and bundle production at one location.
Siemen’s Drive Technologies Division CEO Klaus Helmrich says by 2011 it will primarily be offering standard motors in the new energy-efficiency IE2 class.
“By bundling our manufacturing activities in Mohelnice, we intend to actively promote technological change and to gear our structures to the future,” Mr Helmrich said.
SIEMENS says it will cut 840 jobs from a total of 2,000 at its Bad Neustadt facility and some 300 more jobs at the division’s Erlangen location.
SIEMENS also plans to restructure its Industry Solutions Division.
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