Siemens is set to reduce its global workforce by approximately 6,000 employees. Around 50 percent of these job cuts will occur in Germany, as the company aims to cut costs in response to slowing demand and challenging market conditions. The goal of these layoffs is to align production with the declining demand.
In total, about 5,600 positions will be eliminated in the Digital Industries unit by the end of fiscal 2027, with 2,600 jobs specifically cut in Germany. This unit had previously been Siemens’ most profitable segment, driven by the popularity of its controllers and factory software. Additionally, the electric vehicle charging division will see around 450 jobs cut by 2025, including 250 positions in the domestic market.
The automation sector, which employs 68,000 people, has been adversely affected by poor demand in the Chinese market. Last year, Siemens indicated that job reductions might be necessary due to reduced sales. Performance in Italy and Germany has also been weak.
The charging division is facing intense price competition, and there seems to be limited growth potential in this sector. Consequently, about one-third of this unit’s workforce will also be let go, according to reports.
Siemens employs approximately 312,000 people globally, and layoffs were first hinted at in November 2024.
