German group Siemens Energy said on Tuesday it will cut 7,800 jobs over the next four years so as to reduce costs in a rapidly changing global energy market.

It said the measures are aimed at improving the company’s “competitiveness by enhancing the long-term cost structure”.

“Optimised processes, leaner structures, the reduction of overcapacities and portfolio adjustments will result in the reduction of approximately 7,800 jobs around the world in the gas and power segment”, it said in a statement.

In total, about one employee in 12 will be affected in the group which employs some 90,000 people.

One employee in 12 will be affected in the group which employs some 90,000 people

Around 3,000 jobs would be eliminated in Germany, 1,700 in the United States and 3,100 at other locations.

Around three-quarters of the cuts, planned by the end of the 2025 financial year, will be made in management, administration and sales.

“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 programme we want to regain our competitiveness and financial strength to shape the energy world of tomorrow.”