Siemens Streamlining Operations: Thousands of Jobs on the Line, Especially in Germany
- Siemens to Implement Global Workforce Reduction, Affecting Over 2800 Employees in Germany Alone
Siemens is pulling a major restructure, trimming over 6,000 jobs across the globe – with a whopping 2,850 in Germany themselves. The company attributes this shift to a changing landscape in their key markets.
Market fluctuations have left Siemens with no choice but to slim down, particularly in Germany. Over the past two years, the German market has taken a steep dive, leading Siemens to adjust its capacities in the region. Despite the job cuts, Siemens predicts overall employment in Germany will remain steady, with job opportunities popping up in other sectors.
The industrial automation sector, employing around 68,000 people worldwide, is in Siemens' crosshairs. By the end of fiscal year 2027, the company plans to shed approximately 5,600 positions, including 2,600 in Germany alone. Both China and Germany's order intake and sales have seen a significant drop, the company shares.
Siemens is also spinning off its electric vehicle charging business, currently staffed by over 1,300 people. The company is expecting to slice around 450 jobs worldwide, with 250 of those in Germany.
In total, 86,000 workers are employed by Siemens in Germany. Affected employees will have the opportunity to access training and retraining programs, wherever feasible. Internal job placements play a significant role in the company's restructuring plan; there are currently 2,000 open positions in Germany at Siemens.
Despite the job cuts, Siemens remains dedicated to the industrial heartland of Germany. Of the two billion euros in investments planned for 2023, a full billion is earmarked for the country.
Behind the mass layoffs lie several critical factors:
- ** Soft Demand in Key Markets**: Weak demand in key markets such as Germany and China has limited orders and revenue in the industrial automation business, leaving Siemens no choice but to trim its workforce.
- ** Steepened Competition**: Siemens is grappling with fierce competition from Chinese automation firms offering budget-friendly alternatives. This heightened competition compels the company to get its house in order.
- ** Strategic Redirection**: Siemens is gearing up for a fresh focus on high-growth industries like renewable energy and smart infrastructure. Part of this adjustment includes outsourcing low-margin production to more cost-effective regions and shedding reliance on volatile manufacturing markets.
- ** Turbulent Economic Climate**: The general economic slump in Germany and China has dampened demand for automation technology, necessitating a reevaluation of the company's capacities.
- ** Regional Equalization**: Siemens aims to establish a more balanced regional presence by concentrating on emerging markets beyond Europe and China, which are perceived as having greater growth potential.
In the specifics of the job cuts:
- Industrial Automation (Digital Industries): Approximately 8% of this division's workforce – around 5,600 jobs – will be jettisoned.
- ** Electric Vehicle Charging**: Moving forward, the company plans to target fast-charging infrastructure and adopt a more regional approach, translating to around 450 job cutbacks, with 250 of those in Germany.
This wave of downsizing is part of Siemens' larger quest to thrive in an ever-changing market landscape.
- Siemens, facing soft demand in key markets such as Germany and China, has announced plans to trim its workforce in the industrial automation sector, with approximately 8% of the division's workforce, or around 5,600 jobs, to be cut.
- In addition to the industrial automation sector, Siemens is also streamlining its electric vehicle charging business, aiming to reduce around 450 jobs worldwide, with 250 of those positions situated in Germany.
- Despite the job cuts, Siemens is focusing on growth industries like renewable energy and smart infrastructure, with 2 billion euros earmarked for investments in Germany in 2023, and a significant number of open positions in the country.
