Siemens Slashes Nearly 6K Jobs Globally, Over 2.85k in Germany
Brace Yourself for a Job Cesspool!
Nearly 2,850 employment positions impacted in Germany
In a harsh blow to the global workforce, multinational conglomerate Siemens is set to axe around 6,000 jobs, with a hefty 2,850 slated for the chopping block in Deutschland alone. The predominant victims? The struggling Digital Industries (DI) division.
Fresh off the heels of CEO Roland Busch's cataclysmic announcement last fall predicting job cuts in the low to mid four-digit range, the grim actualities are finally here. Prime targets for the pink slip include 2,600 German jobholders hailing from the automation business, a segment under the Digital Industries umbrella.
So, what's the allure of this automation business, you ask? It's none other than an integral part of the Digital Industries division, responsible for industrial automation hardware and software. The culprits behind this mass exodus? A perfect storm of issues, including bloated inventory levels looming over customers and dealers, triggering a slow-marching demand and a stale-tops capacity utilization.
The revelation of these job cuts comes as a stark contrast to the automation business's disheartening drop in revenue. But, fret not! The company was optimistic about a potential improvement in 2023 and, remarkably, Siemens still managed to rake in an impressive 2.1 billion euros in quarterly profits during the first quarter.
Source: ntv.de, dpa
Now that you're acquainted with the situation, allow me to shine a spotlight on the deeper issues plaguing Siemens. It appears that the company's digital automation business is grappling with crumbling market conditions, particularly in Germany and China. In an effort to right itself, Siemens is committed to realigning its operations with the current market climate. Consequently, they'll be eradicating approximately 8% of their Digital Industries division workforce, amounting to a hefty 5,600 jobs[1][2].
As for Deutschland, things aren't looking too peachy: the market has been in a steady slide for two years now[1][2]. In the face of this adversity, Siemens must trim its operational might, a move that may temporarily cripple its short-term capabilities[1].
However, all is not lost, as Siemens continues to bankroll strategic areas like AI capabilities in the US, outlining a broader strategy aimed at maintaining its innovative edge and market dominance[1].
[1]: Source: ntv.de[2]: Source: dpa[3]: Source: Reuters
Siemens doesn't intend to stop there. The company is also shedding positions in its electric vehicle (EV) charging business, a move driven by intense price pressures and stagnating growth prospects in specific sectors. Instead, the focus shifts to areas brimming with growth potential, such as DC fast-charging infrastructures[2][3].
Germany's automation sector isn't immune to adversity and is currently grappling with dwindling demand, a predicament that could adversely affect Siemens' operations in the region[1][2]. Pour yourself a drink - this storm's far from over!
- In response to the challenging market conditions in Germany, Siemens is revising its community policy to cut approximately 2,850 jobs from its German workforce.
- Amidst the global employment reduction, Siemens has identified the automation business, a sector under the Digital Industries division, as a key area for job cuts, accounting for around 2,600 positions.
- The ongoing job cesspool at Siemens has also extended to the electric vehicle (EV) charging business, with the company shedding positions due to price pressures and stagnating growth prospects in specific sectors, while focusing on areas with growth potential like DC fast-charging infrastructures.
