German industrial giant Siemens has announced plans to cut over 6,000 jobs globally, citing weak demand and increasing competition in key markets such as China and Germany.
The job cuts, which represent approximately 2% of Siemens’ global workforce, are part of a broader strategy to strengthen the company’s competitiveness and enable investments in growth markets.
This decision comes as Siemens faces challenges in its factory automation and electric vehicle (EV) charging businesses, both of which have been impacted by market slowdowns and competitive pressures.
Key Areas Affected as Siemens Cuts Jobs
Siemens’ factory automation unit will account for most of the job cuts. This division supplies robotics, industrial machinery, and software to factories.
This division has been hit hard by muted demand in China and Germany, leading to a significant reduction in orders and revenue.
Siemens will eliminate approximately 5,600 positions in this unit by 2027, with around half of these roles located in Germany.
In addition to the automation unit, Siemens’ electric vehicle charging business will also see job reductions.
The company plans to cut 450 positions from this division, which employs a total of 1,300 people worldwide.
Siemens has attributed these cuts to limited growth potential for low-power charging stations and plans to focus on fast-charging infrastructure instead.
Financial Implications and Employee Support
The challenges in the automation unit have already impacted Siemens’ financial performance.
At the end of 2024, the company’s quarterly operating profit dropped to €2.5 billion ($2.7 billion). This marked a decline from €2.7 billion recorded in the previous year.
The job cuts are part of a broader effort to streamline operations and improve profitability in the face of these challenges.
Siemens’ decision to reduce its workforce is not an isolated case.
German industrial companies, such as Volkswagen and Bosch, have also declared workforce reductions.
These decisions come as a response to weak demand and declining profitability.
The slowdown in demand for electric cars has further compounded the challenges faced by Siemens and other companies in the automotive supply chain.
The company has announced plans to support employees affected by the layoffs in Germany.
It will aim to find new roles within the organization for some of these individuals.
Additionally, some job reductions will occur through retirements.
At the end of 2024, Siemens employed approximately 313,000 people worldwide, including 86,000 in Germany.
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