Siemens Announces Layoffs as Slump in Oil Price Hurts Sales

http://www.nytimes.com/2015/05/08/business/international/siemens-announces-layoffs-as-slump-in-oil-price-hurts-sales.html?_r=0

Siemens, the German industrial giant, said on Thursday that it would cut 4,500 jobs as it reacts to a slump in oil prices that has eroded its sales of equipment to the energy industry.

Lower oil prices have generally been a boon to the eurozone economy, freeing up cash that consumers can spend on other things. But in the case of Siemens, the effect is the opposite because of its large business supplying producers of oil, gas and electricity.

Siemens said it needed to cut jobs and reduce costs because of “the persistently difficult environment in the global power generation market,” which the company said included “regulatory changes, massive price erosion, aggressive competitors and regional overcapacities.”