Siemens has announced cuts within its automation business at Digital Industries and electric vehicle charging business at Smart Infrastructure, affecting more than 6,000 jobs worldwide.
The software company cited changing market conditions in the key markets of China and Germany as the motivation behind the layoffs, which includes 5,600 jobs in Digital Industries and 450 in Smart Infrastructure.
In a statement, Siemens noted a two-year decline in Germany as a major factor, which is expected to impact around 2,600 jobs in Digital Industries by the end of the 2027 fiscal year, and 250 in Smart Infrastructure by the end of 2025. The company elaborated that there will be no operational-related layoffs in Germany, and it expects staff levels to remain stable due to hiring in other areas, adding that there are currently more than 7,000 open positions within the wider Siemens business, 2,000 of which are located in Germany. Siemens says it is still committed to its home market with €1 billion of a €2 billion global investment announced in 2023 earmarked for Germany, including €500 million towards a new research and high-tech manufacturing campus in Erlangen.
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Digital Industries currently employs around 68,000 people worldwide, while its smaller e-vehicle charging business employs 1,300. The company says, though it envisions demand for automation technology to remain over the long term, competitive pressures have led to reduced orders and revenues and is it taking additional measures to realign sales activities, increase collaboration in product development and deliver more flexible steering of the its global factory network.
Siemens had already announced its plans to carve out its e-vehicle charging business, which it says is facing strong price pressures and limited growth potential for low-power charging stations. The company claims it will move forward with a focus on fast-charging infrastructure for depots and fleets and for en-route charging, in addition to a regional approach for markets to better serve different charging standards.
Earlier this month, fellow software giant Autodesk announced similar cuts with a 9% reduction of its workforce as part of worldwide restructuring plan focused on reallocating resources towards what it believes are “critical areas”, such as industry clouds and artificial intelligence.
