“It was not an easy decision”
Siemens will leave the Russian market due to the special operation in Ukraine.
“The company began the procedure for terminating production activities … After the start of the war, Siemens suspended all new operations and international deliveries to Russia and Belarus” – says in a company statement.
The German conglomerate noted that “extensive international sanctions, as well as existing and possible countermeasures, affect the company’s activities in Russia, in particular rail transport and maintenance.”
“We <...> It has decided to carry out an orderly process to end our industrial activities in Russia. “This was not an easy decision, given our responsibility to care for our employees and long-standing customer relationships in a market we have been in for nearly 170 years,” said Roland Busch, President and CEO of Siemens AG.
According to him, the company is assessing the impact of leaving the Russian market on employees and will “continue to support them as best they can.”
“We also provide humanitarian aid to our colleagues and the people of Ukraine and support the international community in its call for peace,” Bush said.
The company said it would reduce its activities in Russia “in accordance with regulatory requirements and international sanctions”.
“Across opposite winds”
The decision to leave the Russian market also had financial consequences. announced Thursday as part of the regular release of second-quarter results.
According to published data, Siemens’ net profit in the first half of the 2021/22 fiscal year decreased by 23% compared to the previous year and amounted to €3.01 billion. The impact of Russia on financial performance in the second quarter of 2022 is estimated at €0.6 billion in the documents. While the same indicator in 2021 was 0.9 billion Euros.
“With strong operating results and excellent free cash flow of €1.3 billion, Siemens’ second quarter highlights our ability and strength to execute, even in the face of significant headwinds. “The tangible results of streamlining our portfolio and continually reducing supply chain challenges have allowed us to confidently move forward the second half of the fiscal year.”
In response, Bush noted that “business remains strong in an extremely difficult environment.” In the second quarter, the company delivered “strong operational performance” and “order and revenue growth reflect customer confidence in supporting digitalisation, automation and sustainability.”
Siemens specializes in areas such as smart infrastructure for buildings and distributed energy systems, automation and digitization of technological process and manufacturing industries, and smart solutions for rail and road transport.
The Siemens website states that the company is currently located in more than 40 cities in Russia and is “one of the leading suppliers of products, services and integrated solutions for the modernization of key sectors of the economy and infrastructure.” Siemens has approximately 2,700 employees and a turnover of 834 million Euros in fiscal 2021.
In February, job search portal HeadHunter reported that Siemens ranked fourth in the ranking of the best Russian employers in 2021. In addition, Siemens has become one of the most popular employers for job seekers.
According to Ekaterina Yanova, the company’s Director of Human Resources, it was “a great honor” for Siemens to “be among the leaders of such a prestigious rating”.
“This shows that our strategy of focusing on employee personality and strengths is paying off. Appreciation of applicants is no less important to us – we believe that our future employees, who find themselves in a comfortable and innovative environment, where there are all opportunities for development, will see for themselves that reality does not deviate from their expectations, ”said the director.
The rating of employers in Russia is compiled by HeadHunter annually for 12 years.