Siemens Announces 5600 Job Cuts in Digital Industries Division

Siemens Announces 5600 Job Cuts in Digital Industries Division

Major Workforce Reduction

Siemens has announced plans to cut 5,600 jobs in its Digital Industries business, citing weak market conditions in Germany and China. The layoffs represent over 8% of the division’s 68,000 global workforce and mark the largest job reduction at the company since 2017.

Impact on German Workforce

Out of the total job cuts, 2,600 positions will be eliminated in Germany. Despite this, Siemens reaffirmed its commitment to Germany as a key business location.

Decline in Industrial Automation

Digital Industries was previously one of Siemens’ most profitable divisions, known for its controllers and factory software. However, reduced demand and increased competition have led to a significant drop in orders and revenue over the past two years. In its latest quarter, profits at Digital Industries declined by one-third.

Broader Industry Layoffs

The announcement follows similar job cuts across the German industrial sector. Volkswagen’s Audi recently disclosed plans to cut 7,500 administrative jobs, while Volkswagen itself is implementing a cost-cutting program involving 35,000 job reductions. Porsche has also announced 3,900 job cuts.

Additional Job Cuts in EV Charging Division

Siemens also revealed plans to reduce its workforce in the electric vehicle (EV) charging business by 450 jobs, amounting to one-third of the division’s employees.

Strategic Shift for Future Growth

Cedrik Neike, a member of Siemens’ managing board, defended the decision, emphasizing the need for the company’s automation business to become more agile and regionally balanced. Neike highlighted the importance of expanding into markets such as the United States and India while increasing its presence in aerospace, defense, and process industries.

Union Response

German trade union IG Metall criticized the layoffs, arguing that transformation should be driven by skill development and training rather than workforce reductions. Juergen Kerner, vice chairman of IG Metall and a member of Siemens’ supervisory board, expressed concerns that the decision could damage employee trust and hinder long-term progress.

“Siemens Announces 5600 Job Cuts in Digital Industries Division” “Siemens Announces 5600 Job Cuts in Digital Industries Division”