[News] Siemens to Cut 6,000+ Jobs: Biggest Layoff Since 2017 Amid Automation & EV Challenges

According to a report from ijiwei, citing The Wall Street Journal, Germany engineering company Siemens plans to slash over 6,000 jobs across its automation and electric vehicle charging sectors. This includes approximately 5,600 positions globally within the automation segment at Digital Industries and about 450 roles worldwide in its EV charging business.

The layoffs are expected to be implemented by the end of fiscal 2025, as reported by The Wall Street Journal.  A report from Reuters highlights that this marks Siemens’ largest round of job reductions since 2017.

Siemens, which employs 312,000 people worldwide according to its website, attributes the layoffs to declining demand, especially in key markets like China and Germany. The company further cites growing competitive pressures as significant factors contributing to a sharp drop in orders and revenue within the industrial automation sector, The Wall Street Journal reports.

Additionally, The Wall Street Journal highlights that Siemens points to intense price competition and limited growth potential for low-power charging stations as challenges currently affecting the electric vehicle charging market.

Meanwhile, as noted by Reuters, Digital Industries has historically been the most profitable division within the Siemens group, known for its controllers and factory software. However, in the most recent quarter, profits in the Digital Industries segment fell by one-third.

Siemens’ layoff announcement follows similar moves within the automotive industry. Just days earlier, Volkswagen’s Audi disclosed plans to cut 7,500 administrative positions, according to Reuters. Volkswagen itself has launched a broader cost-cutting initiative involving 35,000 job reductions, while Porsche plans to eliminate 3,900 positions.

Japanese automaker Nissan is also implementing layoffs as part of its corporate restructuring, announcing on March 19 that it will reduce top management positions by 20% to support its turnaround efforts. As part of these changes, Ivan Espinosa, currently the chief planning officer, will take over as representative executive officer, president, and CEO, succeeding Makoto Uchida. All changes will take effect on April 1, according to Nissan’s press release.

Read more

• [News] Major Carmakers Porsche and Nissan Cut Jobs Amid Market Slowdown
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(Photo credit: Siemens)