Houston Chronicle

Siemens closes local center, lays off workers

- By Erin Douglas STAFF WRITER Jordan Blum contribute­d to this report. erin.douglas@chron.com twitter.com/erinmdougl­as23

Siemens Energy, which cut 200 jobs at the end of last year, will lay off 35 more workers this summer as the German industrial conglomera­te finishes closing its Houston service center.

The latest service center layoffs will come in two rounds. On July 12, 21 positions will be eliminated at the gas turbines parts and components service center, located at 5730 Clinton Dr. Then, 14 more positions will be eliminated Aug. 16, according to notices filed with the Texas Workforce Commission.

Between December and January, Siemens laid off 217 workers at the Houston center, according to the workforce commission. Most of the site closure will be completed by the end of this year, according to the company.

The engineerin­g giant attributed the closing of the service center and layoffs to global energy market conditions and overcapaci­ty in the company’s network. Oil prices fell 40 percent at the end of last year and have only partially recovered. Crude settled at $58.47 a barrel Friday in New York, down 96 cents.

“This difficult decision was made as a result of the downturn in the global energy market,” wrote Annie Satow, a Siemens spokespers­on, in a statement.

The company last September informed employees of the plan to close the center. The job cuts are taking place in phases, as work from the Houston Service Center is consolidat­ed into other Siemens facilities in the United States.

Employees will receive a severance package, according to the company’s letter to the state. Siemens is also cutting jobs in Germany at its power division, after undertakin­g months of negotiatio­ns with labor unions.

Other companies are also cutting jobs as the global economy slows. The German chemical company BASF, which employees about 2,000 people in the Greater Houston area, said Thursday it will cut 6,000 workers worldwide. The company, which has about 120,000 workers globally, did not specify how cuts might affect its Houston operations.

Low chemical prices, particular­ly in Europe and China, have hurt profits for companies such as LyondellBa­sell and Huntsman Corp. in recent quarters.

 ?? Tobias Schwarz / AFP/Getty Images ?? The German industrial conglomera­te Siemens has cut more than 200 jobs in Houston since the end of 2018.
Tobias Schwarz / AFP/Getty Images The German industrial conglomera­te Siemens has cut more than 200 jobs in Houston since the end of 2018.

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