German engineering giant Siemens said Wednesday it would slash 2,500 jobs from its industrial division in a reorganisation to cope with a slump in the oil and gas as well as the metals and mining sectors.
The group however pledged to make 25,000 new hires worldwide "in each of the coming years" for its other divisions as it switches its focus to become a "digital industrial company."
For its process industries and drives (PD) division, "a total of about 2,500 jobs worldwide -- of which 2,000 are in Germany, primarily in Bavaria --- will be affected by the realignment," it said in a statement.
"Plunging demand in raw materials markets has led to a significant intensification of competition, particularly in Asia," said Juergen Brandes, chief executive of the PD division.
"To guarantee our competitiveness, we've got to adapt to these conditions," he added.
Siemens, which makes a slew of industrial products from wind turbines to trains, has a global work force of around 348,000 people.