Siemens plans to axe 5,600 jobs from its global automation business

Siemens has announced plans to cut about 5,600 jobs from its worldwide automation business, including around 2,600 in Germany. It says that changed conditions in its key markets have made these capacity adjustments necessary. It has presented its plans to representatives of its employees.
It is also planning to cut around 450 jobs worldwide in its electric vehicle charging business, including about 250 in Germany. This sector has also been hit by a downturn.
Since the start of the 2023 financial year, Siemens says it has experienced “muted” demand in its industrial automation business, especially in its key markets of China and Germany. This, coupled with increased competitive pressures, has led to orders and revenues in the business being “considerably” reduced. However, it expects global demand for automation technology to remain intact over the long term.
Siemens says that the shift of growth away from its current key markets has made a structural adjustment of its capacities necessary. It is planning various measures to strengthen the competitiveness of its Digital Industries automation business, including a realignment of sales activities, cross-unit collaboration in product development, and a more flexible steering of the organisation’s global factory network.
For two years, the German market, in particular, has been declining. Siemens is ruling out “operational-related” layoffs in Germany. Its aim is to strengthen the future competitiveness of the affected businesses and to allow investments in growth markets.
Despite the planned cutbacks, Siemens’ total headcount in Germany is expected to remain stable due to hiring in other, expanding areas.
Siemens first announced the planned capacity adjustments in its automation business in November 2024. The Digital Industries business employs about 68,000 people worldwide, and the planned reductions will affect about 5,600 jobs globally. The measures are due to be implemented by the end of fiscal 2027.
Siemens currently employs a total of around 86,000 people in Germany. As far as possible, the people affected by the planned cutbacks will be offered opportunities for re- and up-skilling. Job placement inside the company will also play a key role in implementing the measures.
There are currently more than 7,000 vacant positions at Siemens, of which about 2,000 are in Germany.
Siemens says that it remains strongly committed to Germany as a business location. Of the €2bn in global investments that it announced in 2023 to strengthen its growth, innovation and resilience, about €1bn are earmarked for Germany. This includes €500m for Siemens’ new campus for research and high-tech manufacturing in Erlangen, Germany, where it is establishing a global centre for development and manufacturing and a springboard for technology-related activities to drive the industrial metaverse.
- In September 2024, Siemens announced plans to carve out its electric vehicle charging business to leverage opportunities in the dynamic market for charging infrastructures. This market is characterised by strong price pressures and limited growth potential for low-power charging stations. For this reason, the business is focusing on market segments such as fast-charging infrastructures for depots and fleets, and en-route charging. In addition, Siemens is planning to establish a more regional approach with sometimes different charging standards to be able to serve the markets faster and in a more targeted manner. Worldwide, Siemens currently employs more than 1,300 people at its EV charging business. The planned measures are due to be implemented by the end of fiscal 2025.

