Investing.com -- Siemens (ETR:SIEGn), the German multinational conglomerate, has announced plans to make job cuts in its automation and electric vehicle (EV) charging sectors worldwide. The decision comes as part of a strategy to increase the company’s global competitiveness. Despite the layoffs, Siemens remains committed to Germany as a business location, with no operational-related redundancies planned in the country.
The company’s plans will affect units in the automation business at Digital Industries and the EV charging business at Smart Infrastructure. Changing market conditions have necessitated capacity adjustments in both sectors. The German market, in particular, has been experiencing a decline over the past two years, making capacity adjustments in the country necessary.
The planned measures in the automation business will impact around 5,600 jobs worldwide, including approximately 2,600 in Germany. The EV charging sector will see a reduction of about 450 jobs globally, with around 250 of those in Germany. Despite these cuts, Siemens’ total workforce in Germany is expected to remain stable due to hiring in other growing areas.
Since the beginning of fiscal 2023, a decrease in demand primarily in key markets like China and Germany, along with increased competition, has significantly reduced orders and revenue in the industrial automation sector. However, global demand for automation technology remains strong over the long term. To strengthen competitiveness, Siemens plans to realign sales activities, enhance cross-unit collaboration in product development, and flexibly manage the organization’s global factory network.
Siemens first announced the planned capacity adjustments in its automation business at its Annual Press Conference in November 2024. The company employs about 68,000 people worldwide in Digital Industries. The proposed reduction is expected to be implemented by the end of fiscal 2027.
In September 2024, Siemens also revealed plans to carve out its EV charging business to better exploit opportunities in the dynamic charging infrastructure market. The market is currently facing strong price pressures and limited growth potential for low-power charging stations. Therefore, the business is focusing on market segments such as fast-charging infrastructure for depots, fleets, and en-route charging. The company currently employs over 1,300 people in its EV charging business. The planned job cuts in this sector are expected to be implemented by the end of fiscal 2025.
Siemens currently employs around 86,000 people in Germany. The company plans to offer re- and upskilling opportunities to those affected by the job cuts. Job placement within the company will also be a key part of the implementation process. Siemens currently has more than 7,000 open positions, with approximately 2,000 of those in Germany.
Siemens continues to show strong commitment to Germany as a business location. Of the €2 billion in global investments announced by the company in 2023 to boost growth, innovation, and resilience, about €1 billion is allocated for Germany. This includes €500 million for Siemens’ new research and high-tech manufacturing campus in Erlangen, Germany. The company aims to establish a global center for development and manufacturing and a launch pad for technology-related activities to drive the industrial metaverse.
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