Siemens To Cut 8 Per Cent Jobs In Digital Industries Division, Layoff 450 Employees In EV Charging Unit

The decision to slash these jobs was driven by the declining demand in key markets such as China and Germany, forcing the firm to adjust its production capacity accordingly.

Siemens on Tuesday announced that it will slash 5,600 jobs across the world. The layoffs will be focused on its Digital Industries division, slashing over 8 per cent of the overall workforce of 68,000 individuals worldwide in the segment.

This will mark one of the biggest layoffs conducted by the firm in recent years, reported Reuters. The decision to slash these jobs was driven by the declining demand in key markets such as China and Germany, forcing the firm to adjust its production capacity accordingly.

The layoffs will impact 2,600 jobs in Germany alone, however, Siemens reaffirmed its commitment to maintaining a presence in its home country. The company has a workforce of 312,000 employees globally.

Until recently, Digital Industries was Siemens’ most profitable unit, known for its controllers and factory software. However, the company stated, "muted demand primarily in the key markets of China and Germany coupled with increased competitive pressures have considerably reduced orders and revenue in the industrial automation business" over the past two years.

Layoffs Across Divisions

Siemens already hinted at potential layoffs earlier in November. In its most recent quarterly report, the company revealed that profits in its Digital Industries division plunged by a third. On the same day as the job cut announcement, Siemens also confirmed plans to lay off 450 employees from its electric vehicle charging unit, reducing that workforce by one-third.

Cedrik Neike, a member of Siemens' managing board, defended the decision, stating that the company’s automation business needed to become more efficient and responsive. Speaking to German newspaper, Handelsblatt, he said, "We need to become more regionally balanced and gain a broader customer base." Neike also highlighted the need for Siemens to expand in other Asian markets, particularly India, and increase its presence in the US, aerospace, defense, and process industries, the report noted.

Germany’s IG Metall trade union strongly criticised the move, arguing that it would harm employee trust. "Transformation is not achieved through downsizing, but through positive change, above all by primarily further development and training," said Juergen Kerner, vice chairman of IG Metall and a member of Siemens' supervisory board.