Siemens is preparing to trim its global workforce by about 6,000 employees. About 50 per cent of the cuts will happen in Germany as the company tries to cut costs amidst slowing demand and market conditions. The objective of the cuts is to align production with the fall in demand.
About 5,600 jobs roles will be axed in total in the Digital Industries unit by the end of fiscal 2027, of which 2,600 jobs will be axed in Germany itself. Interestingly, Digital Industries was reportedly the unit that brought in maximum profits for Siemens till recently due to the popularity of its controllers and factory software. The electric-vehicle charging business will cut about 450 jobs in 2025 itself, with 250 jobs being cut in the company’s domestic market.
The Chinese market has been witness to poor demand, which has affected the 68,000-strong automation business adversely. Last year itself Siemens had indicated that jobs may have to be cut in keeping with the poor sales. Italy and Germany have not performed well either.
Siemens’ charging business is facing stiff competition in terms of price. Additionally, there appears to be little possibility for growth in this sector. Therefore, about a third of this unit’s workforce will also be let go, as per reports.
Siemens employs about 3.12 lakh people, globally and layoffs had been hinted at in November of 2024.