The Siemens Energy Inc. plant located in Mount Vernon is letting go of 240 jobs due to energy prices.
Siemens AG, which purchased Rolls-Royce Holdings Plc as part of a $1.32 billion deal last year, produces lightweight natural gas turbines and compressor equipment that is powered by generators and used by oil and gas companies.
The Mount Vernon plant has about 900 employees and is one of the city’s key players in employers. A Rolls-Royce spokesperson stated that between 200-240 people will be losing their jobs and the cuts are unrelated to the acquisition. Siemens made the following statement regarding the job cuts and the industry’s low energy prices:
Over the past few months, Siemens employees in Mount Vernon have been informed about changes in the global energy marketplace and decreasing business volume at this plant during the past year … While decisions that impact employees and communities are always extremely difficult, the current workload in Mount Vernon requires a smaller work force, and the work force level at this facility is being adjusted accordingly.
This week, Worthington Industries Inc. also announced that it will be cutting jobs and its facilities that supply the oil and gas industry. The cuts will include over 100 layoffs at Ohio locations.
Due to low oil and natural gas prices, which are half of what they were a year ago, several companies are cutting jobs, retiring plants and selling assets.
Updated March 31st 2015