The fallout growing by the day. And this only a fraction of the 6,900 Siemens employees who stand to lose their jobs. The cuts come as rapid growth of renewables puts a squeeze on the company's power and gas division. Most of the job losses will be made in Germany, forcing the issue up for national agenda in the face of potential fresh elections.
Angela Merkel's efforts to forge a coalition with two smaller parties collapsed last weekend. Siemens's plan has sparked government criticism that it could encourage right wing populism in economically weak areas, particularly in former East Germany where two plants slated for closure are located. Merkel's opposition also wading into the debate.
> When a company makes 6.3 billion Euros in profit, there's no reason to cut jobs, it's as simple as that.>> Siemens says it's calling for dialogue but that job losses are inevitable as the energy market changes. For many it's less about the why and more about the way in which the cuts are being made.
Labor representatives are usually involved at an early stage to find ways for workers to be reemployed or retire early. This time around they say the announcements came out of the blue.