The company announced the layoffs to its workers saying there was too much staffing compared to the amount of current and expected business.
The announcement came as a surprise to many, especially after Oregon's mass transit provider Tri-Met just awarded Siemens a 73 million dollar contract to build 18 new trains.
In an email to Capital Public Radio, Michael Krampe with Siemens wrote that the announcement has no impact on the Portland project. The company is adjusting its staffing to meet the current workload.
United States Transportation Secretary Ray LaHood visited the company's manufacturing plant in February. He praised the German company then as an example American companies should follow when it comes to job creation.
Siemens had survived the recession relatively well by relying on government purchases of its products.