Siemens, one of Germany’s leading industrial giants, has unveiled a tough cost-cutting plan that will result in the loss of 5,600 jobs in its Digital Industries division, nearly 1 in 11 positions out of 68,000.
An additional 450 jobs will be slashed in the electric vehicle (EV) charger sector. Around 3,000 of the layoffs will be in Germany, though Siemens intends to reduce its workforce without direct layoffs, instead relying on natural attrition.
The Digital Industries division, based mainly in Bavaria, has been a key profit driver for Siemens, contributing 30% to the company’s €11.4 billion profit in 2024. However, declining sales and profits in recent months, particularly in automation, have prompted the cuts. The EV charger business has also struggled due to intense competition and waning demand following the slowdown of the EV boom.
Siemens plans to later spin off the charging business and shift its focus to boosting competitiveness, with plans to expand in other Asian markets like India and the US, while also strengthening its aerospace, aviation, and defense sectors. Board member Cedrik Neike emphasized the need to diversify the company’s regional footprint and customer base.
Employee representatives, however, have expressed outrage, criticizing the job cuts. Birgit Steinborn, chair of the Siemens Works Council, voiced her surprise and anger at the scale of the layoffs.
