Siemens Energy announced plans to cut 7,800 jobs in its gas and power segment to improve its “long-term competitiveness” as it looks to focus on green energy.
Its shares ticked up roughly 0.8% Tuesday morning.
The company, which was spun off last year by German industrial giant Siemens AG (SIE.DE) and currently employs 90,000 people globally, also said it will no longer bid on contracts for new coal-fired power plants.
The move come on top of an earlier plan to reduce costs by a minimum of €300m (£264m, $362m) in the same area.
“The energy market is significantly changing which offers us opportunities but at the same time presents us with great challenges,” said CEO Christian Bruch.
“With this program we want to regain our competitiveness and financial strength to shape the energy world of tomorrow. We are fully aware that this is a challenging program for our employees. Hence, we will undertake these measures in the most socially responsible way possible.”
Around three-quarters of the job cuts will be made in management, administration and sales. There will be around 3,000 cuts in Germany and 1,700 in the US while the rest will be spread across other regions.