Siemens AG plans to cut over 6,000 jobs globally, across its Digital Industries and EV charging divisions.
The Digital Industries unit faces 5,600 job cuts due to decreased demand and increased competition, particularly in China and Germany.
Siemens AG plans to reduce its global workforce by over 6,000 positions—primarily targeting its Digital Industries division and EV charging business—in a bid to bolster competitiveness amid shifting market dynamics and heightened competition.
Battling strong competition: The Digital Industries division, responsible for automation technologies, will see approximately 5,600 job cuts, representing over 8% of its 68,000-strong global workforce. Notably, 2,600 of these reductions are slated for Germany. Siemens attributes this decision to subdued demand in key markets, particularly China and Germany, coupled with increased competitive pressures that have led to a considerable decline in orders and revenue over the past two years.
EV charging business pivots: In the EV charging sector, Siemens plans to eliminate around 450 positions globally, with 250 of these in Germany. The company cites intense price competition and limited growth potential for low-power charging stations as factors necessitating the move, which will reduce the unit’s workforce by approximately 35%. The company says in future it will concentrate on fast-charging infrastructure for depots, fleets, and en-route charging, aligning with evolving market demands.
Commitment to Germany remains: Despite the layoffs, and their skew towards the company’s home market, Siemens maintains it is strongly committed to Germany as a business hub. It says operational-related layoffs in Germany are ruled out, and it plans to offer affected employees opportunities for re-skilling and internal job placements. Currently, Siemens has over 7,000 open positions worldwide, including about 2,000 in Germany, which may provide avenues for redeployment.
