Siemens employs more than 370,000 people around the world.

Industrial conglomerate Siemens is planning to cut 6,900 jobs, mostly in Germany and the U.S.

Most of the job cuts will hit the Siemens (SIEGY) unit that provides turbines and services to companies that generate power from oil and gas.

The German company said Thursday that the cuts were necessary because it faces increased competition from the renewable power market.

"The power generation industry is experiencing disruption of unprecedented scope and speed," explained Lisa Davis, a Siemens board member. "Renewables are putting other forms of power generation under increasing pressure."

Another Siemens division that provides large electrical motors and generators to miners, steel producers and shipbuilders will also shed some jobs.

The job cuts amount to nearly 2% of Siemens' global workforce of more than 370,000. About half of them will fall in Germany, where some locations will close. In the U.S.,1,800 jobs will be lost through the consolidation of production facilities and administrative functions.

Source: CNN Money