German industrial giant Siemens announced on Tuesday its plan to cut over 6,000 jobs worldwide, representing about 2 percent of its global workforce.
In a statement released on its website, Siemens outlined intentions to restructure the capacity of its automation and electric vehicle charging business to invest in growth-oriented sectors and bolster future competitiveness.
According to the statement, "global demand for automation technology is intact over the long term," while the growth focus is shifting away from current major markets including Germany. Coupled with intensified competitive pressures, the industrial automation business is projected to see significant reductions in orders and revenue starting from the 2023 fiscal year.
By the end of the fiscal year on September 30, 2027, Siemens plans to cut around 5,600 positions globally within its automation division, with approximately 2600 roles in Germany set to be affected.
Meanwhile, the company indicated a strategic shift towards areas like fast-charging infrastructure due to limited growth potential in low-power charging stations. As a result, by the end of the 2025 fiscal year, the company plans to reduce around 450 positions out of the 1,300 people in its electric vehicle charging business, including about 250 in Germany.
Siemens stated its commitment to assisting the people affected in Germany in "job placement inside the company," acknowledging that "people employed at Siemens' locations in Germany will also retire for age reasons."
As of the end of last year, Siemens employed approximately 313,000 people globally, with around 86,000 employees based in Germany.
Siemens to cut over 6,000 jobs worldwide in restructuring of automation, EV charging business
