Siemens Cuts 6,000 Jobs in Digital Industries, EV Charging Amid Weak Demand

What’s happening at Siemens?

Siemens has announced plans to reduce its workforce by more than 6,000 employees in its Digital Industries and electric vehicle charging divisions.

The reductions mark Siemens’ largest workforce reduction since 2017, according to Reuters.

• 5,600 jobs will be cut in the Digital Industries division, representing 8% of the unit’s 68,000 global employees.
• 2,600 of those job losses will be occur in Germany.
• The remaining reductions will be spread across other global operations.
• An additional 450 jobs will be eliminated at Siemens’ electric vehicle charging business, roughly one-third of that division’s workforce.

These measures come as Siemens responds to declining demand in two of its key markets: Germany and China.

Official statements and context

Profitable Division Faces Challenges: Siemens’ Digital Industries division has long been one of the company’s most profitable arms, known for its industrial controllers and factory software.

• However, the company cites persistent market challenges as the driver behind its decision.
• “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,” Siemens said in a statement.
• The company previously cut 4,100 employees from its Gamesa wind turbine division in 2024.

Defending the Changes: Cedrik Neike, Managing Board Member at Siemens, defended the move, emphasizing the need for strategic adjustments.

• “We need to become more regionally balanced and gain a broader customer base,” Neike told media outlet Handelsblatt.
• Siemens plans to expand its presence in other Asian markets like India and in the aerospace, defense, and process industries.
• It will continue to treat Germany as a core business location.

Criticism of Decision: German trade union IG Metall took issue with the changes, raising concerns about employee trust and the company’s transformation strategy.

• “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.

Impact on Canadian staff

Samfiru Tumarkin LLP is working to determine if any Canadian employees at Siemens are being let go.

According to the company’s website, it has more than 4,400 workers in the country.

• SEE ALSO: Siemens to establish R&D centre in Oakville, creating up to 90 jobs

📺 WATCH: Everything You Need to Know About Mass Terminations

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