Siemens has announced a major restructuring effort via layoffs, cutting over 6,000 jobs globally, with the majority of reductions affecting its industrial automation and electric vehicle (EV) charging businesses.
The layoffs, revealed on March 18, 2025, are aimed at improving efficiency and focusing resources on high-growth sectors.
Breakdown of Siemens Job Cuts
- Automation Division: 5,600 jobs eliminated, including 2,600 in Germany.
- EV Charging Business: 450 jobs cut, with 250 in Germany.
These layoffs are part of Siemens’ broader strategy to streamline operations and adjust to evolving market conditions.
Why Siemens Is Cutting Jobs
Siemens cited declining demand, increasing global competition, and shifting industrial priorities as key factors behind the layoffs. Specific reasons include:
- Slower Demand for Automation: Reduced investment in industrial automation, particularly in China and Europe.
- Rising Competition: Increased pressure from low-cost Chinese manufacturers in both automation and EV charging sectors.
- Strategic Business Shift: A stronger focus on digitalization, AI-driven industrial solutions, and sustainable energy.
Impact on Siemens and the Global Market
The layoffs reflect wider challenges in Germany’s industrial sector, where companies face economic slowdowns, energy cost concerns, and supply chain disruptions.
What’s Next?
- Completion Timeline: Siemens plans to finalize job reductions by the end of fiscal year 2025.
- Resource Reallocation: Investments will be redirected toward high-growth areas, such as AI-powered manufacturing and renewable energy solutions.
- Support for Affected Employees: The company has pledged to provide severance packages and job transition assistance where possible.
Siemens’ 6,000+ job cuts mark a significant shift in the company’s strategic direction, as it adapts to changing market conditions and technological advancements. While this move strengthens Siemens’ long-term growth prospects, it also raises concerns about the broader impact on the global automation and EV charging industries.
