Siemens Enacts Mass Job Cuts on Thousands of Employees
Heads up, Siemens slashing 6K jobs worldwide, with German and Bavarian chapters potentially bearing the brunt
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German industrial juggernaut, Siemens, has announced a major round of layoffs, planning to eliminate about 6,000 jobs globally. Here's the scoop:
following the announcement made by their CEO last fall, Moreover, these cuts could heavily impact Bavaria, Germany, as the primary locations of the struggling Digital Industries division's plants.
CEO Roland Busch had already announced job cuts in the ballpark of the low to mid four-digit range back in fall, and now, we have the concrete figures. Siemens' Digital Industries division, particularly its automation business, has been hit hard due to high inventory levels at customers and poor demand.
Revenue in the automation business has taken a significant dive, but the company reported an improvement recently. Despite a challenging quarter, overall, Siemens' business is thriving - the company reported a profit of 2.1 billion euros in the first quarter of the current fiscal year.
The declining German market, combined with the ever-changing central markets, led Siemens to make these adjustments. However, the number of employees in Germany will remain relatively stable overall, as Siemens continues to grow in other sectors.
More details on where exactly the job cuts in Germany will occur haven't been disclosed yet. The electric vehicle charging business, which Siemens plans to spin off, will also see additional cuts - around 450 jobs by the end of this September, with 250 of those in Germany.
## Diminishing Growth, Mounting Pressure The job cuts are largely due to growing price pressure, limited growth potential, and increased competition in the charging station market, particularly in the lower power range.
The works council voiced concerns, questioning the rationale of the planned measures and demanding a sustainable approach to job creation instead of massive cuts for short-term gains. Criticism also came from Second Chairman of IG Metall, Jürgen Kerner, who emphasized the need for a positive transformation strategy rather than downsizing.
## A New Era for Siemens While some sectors are being trimmed, Siemens is looking to expand in others, focusing on green energy and emerging markets. The company hopes to maintain competitiveness and adapt to the evolving industrial landscape.
Industrial restructuring in Europe will likely continue as companies like Siemens adapt to global competition and economic challenges.
Overall, Siemens' restructuring efforts reflect a strategic shift to meet current market conditions and maintain competitiveness in a rapidly changing industrial landscape, although the specific impact on Bavaria remains to be seen.
### Enrichment Data: - Total Job Cuts: Approximately 5,600 jobs globally. - Germany Impact: 2,600 job losses in Germany, with a portion likely affecting Bavaria. - Reasons for Job Cuts: Muted demand in key markets, increased competitive pressures. - Strategic Expansion: Green energy and emerging markets. - Response and Criticism: German trade unions have criticized the decision, emphasizing the need for positive transformation strategies rather than downsizing. Siemens emphasizes a socially responsible approach to restructuring.
- As a response to the mounting pressure and limited growth potential in certain sectors, Siemens plans to focus on vocational training to expand its capacities in green energy and emerging markets, as part of its strategic shift.
- Although Siemens has announced a community policy for the restructuring process, theSecond Chairman of IG Metall, Jürgen Kerner, has expressed concerns about the job cuts, stating the importance of a positive transformation strategy rather than massive downsizing.
- With the likely impact on Bavaria still unclear, whatsapp discussions among locals have escalated, questioning the likely consequences of Siemens' decision to cut around 2,600 jobs in Germany, particularly those in the Cuts could potentially hit the Digital Industries division's plants in Bavaria, following Siemens' global plan to eliminate about 5,600 jobs worldwide.
