Siemens to cut over 6,000 jobs in automation and EV segments
Image courtesy Siemens
In plans to “increase its global competitiveness”, tech giant Siemens has announced layoffs for over 6,000 jobs globally in their automation and EV segments, marking a 2% drop in the company’s workforce.
Reductions will affect 5,600 jobs in their Digital Industries’ automation business and 450 in their Smart Infrastructure’s EV charging business, the company states in a release.
The Munich, Germany-based company cites changed conditions in key markets, particularly on their home ground.
The aim of the layoffs is thus to strengthen the future competitiveness of the businesses affected and enable investments in growth markets.
EV segment
Worldwide, Siemens currently employs more than 1,300 people in its EV charging business. Around 450 jobs will be affected, including about 250 in Germany. The planned measures are to be implemented by the end of fiscal 2025.
In September 2024, Siemens announced its intention to carve out its EV charging business, citing strong price pressures and limited growth potential for low-power charging stations.
Rather, with the cut offs, the business wants to focus on market segments such as fast-charging infrastructure for depots and fleets and for en-route charging.
The carve-out, said the company, was also designed to combine Siemens eMobility with Heliox – a specialist in DC fast charging solutions, focused on eBus and eTruck fleets – into its own structure, to enable the company’s expansion into new markets.
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Commenting at the time was Matthias Rebellius, a member of the managing board of Siemens AG and CEO of Smart Infrastructure.
Rebellius said that, with the shift, the company will have “more freedom to define its focus areas based on business strengths. This business will be well positioned to foster new partnerships to increase customer access through new sales channels and enrich capabilities in new end markets.”
Automation
On the automation side, since the start of fiscal 2023, Siemens says ‘muted demand’, primarily in the key markets of China and Germany, coupled with increased competitive pressures have reduced orders and revenue.
Siemens initially announced the planned capacity adjustments at its automation business in November 2024 with the release of its annual results.
At the time, despite continued strong demand for electrification, transportation and software, “our automation business remained challenging”, said Roland Busch, president and CEO of Siemens AG.
Siemens’ Digital Industries employs about 68,000 people worldwide. The planned reduction will affect about 5,600 jobs globally, with 2,600 planned for Germany specifically. The cutoffs are to be implemented by the end of fiscal 2027.
Approximately 86,000 people currently work at Siemens in Germany. As far as possible, says the company, the people affected are to be offered opportunities for re- and upskilling.
Job placement inside the company will also play a key role in implementing the measures. There are currently more than 7,000 open positions at Siemens, of which about 2,000 are in Germany alone.
As of the end of the 2024, Siemens employs approximately 313,000 employees, with 227,000 operating globally.
