Siemens AG, the multinational conglomerate known for its prowess across multiple industries, announced on March 18, 2025, significant restructuring plans resulting in approximately 6,000 job cuts globally. Of this total, 2,850 positions will be eliminated within Germany, primarily affecting the company’s automation division and, to a lesser extent, the electric vehicle charging solutions segment. This initiative is perceived as necessary due to recent downturns associated with high inventory levels and lower demand.
The cuts reflect the continued challenges faced by Siemens’ Digital Industries (DI) segment, particularly its automation business, which is slated to see the most significant reductions. By September 2027, the company anticipates cutting 5,600 jobs globally within this sector, including 2,600 jobs based in Germany. Alongside these, Siemens plans to shed an additional 450 jobs by the end of September 2025 related to its electric vehicle charging segment, with around 250 of those roles also based in Germany.
Siemens CEO Roland Busch detailed these job cuts as part of necessary adjustments to cope with changing market conditions, emphasizing the company’s realistic observations of declining demand over the past two years within its primary markets. "This is particularly true for the German market, which has been on the decline, necessitating capacity adjustments here," he noted. Despite the job cuts, Siemens reported strong overall financial health, recording €2.1 billion profit during the first quarter of 2025. The firm aims to maintain, on balance, workforce levels by hiring for other growing segments.
The news of these cuts sparked immediate backlash from employee representatives. Birgit Steinborn, chair of the works council and vice chair of Siemens' supervisory board, expressed disbelief and anger at the scale of the job reductions. "We have no comprehension of the planned measures at DI and are shocked and dismayed by the extensive planned layoffs," she stated, calling for sustainable job creation instead of reductions made purely for profit margin improvements. Her concerns reflect broader sentiments within the workforce, as many believe the company's previous commitment to being recognized as a "One Tech Company" is now under serious scrutiny.
Jürgen Kerner, second chair of IG Metall, also reacted strongly, highlighting the disconnect between the company’s strategic vision and its actions. "On one hand, drafting the future-oriented vision of One Tech Company, and on the other hand, eliminating thousands of positions, cannot be communicated to employees effectively," he remarked. He also suggested the changes could erode employee trust during this transition, making the restructuring efforts contentious.
Siemens has communicated plans to proceed with the job cuts without resorting to obligatory layoffs. The restructuring activities are focused on specific regions, with reports indicating Bavaria could be particularly impacted because several major DI facilities are located there, including those in Erlangen, Fürth, Nürnberg, and Amberg. These sites are deemed highly susceptible to the current adjustments due to their scale and operational focus on automation. Currently, the company has around 2,000 job vacancies within Germany, which it aims to fill as part of its overall strategy to balance workforce adjustments.
Despite the harsh realities facing these workers, Siemens continues to express its commitment to the German industrial site. While operational efficiency is central to the transition, the company assures affected employees will receive training and support for new roles, contributing to their career continuity. The strategic focus is shifting more toward profitable sectors, particularly rapid charging solutions for electric vehicle infrastructure.
This move occurs as broader economic conditions are affecting German industries at large. Reports from the ifo Institute and OECD are starting to reflect downward revisions to economic forecasts amid heightened global competition and increasingly challenging market environments. Companies like Siemens are being compelled to rethink their operational mandates to maintain competitive edges.
The reaction from Siemens’ labor representatives and management alike indicates significant tension as the company grapples with its role within rapidly changing markets. While the official stance reflects the necessity for economic efficiency and adaptation, it remains to be seen how these changes will impact workforce morale and collective trust moving forward.
For impacted employees, the looming changes raise questions not only about their immediate job security but about the long-term health of their work environment. Siemens’ actions will likely define the narrative of employee relations within the company for years to come as it transitions to meet new market demands.
