Siemens AG has announced plans to cut approximately 6,000 jobs globally, with 2,850 of these positions affected within Germany, as the company makes necessary adjustments to its business strategy amid fluctuated market conditions.
On March 18, 2025, company CEO Roland Busch reported specific figures for job reductions within Siemens’ Digital Industries (DI) division, which is primarily responsible for automation processes. This announcement clarifies earlier statements made last autumn, where Busch indicated potential job cuts ranging from the low to mid four-digit spectrum. According to Siemens, this restructuring aims to improve operational efficiency and respond to decreased demand following high inventory levels affecting customer needs and resulting productivity.
The planned job cuts will take place over the next two years, concluding by September 2027, with 5,600 positions slated for termination within the automation sector, which has been struggling with poor performance. Included are 2,600 job reductions expected to occur across Germany. Notably, the company has emphasized its commitment to avoiding forced layoffs within the German workforce.” We will go about the reductions without resorting to terminations related to operational necessities,” stated Busch.
It’s important to highlight the additional 450 positions set to be eliminated from Siemens’ electric vehicle charging solutions unit, with 250 of these jobs also being cut from the German workforce by September 2025. The decision reflects the harsh realities of the market, which is currently experiencing strong price pressures and limited growth prospects, compelling the company to refocus its strategies on high-demand segments.
Despite these organizational troubles, Siemens has reported stable financial health overall. The corporation made €2.1 billion in profit during the first quarter, indicating some resilience and potential for growth in other business areas. Analysts have noted, though, “particular market conditions have necessitated adaptations, particularly within central markets. The German market itself has seen declines over the past two years, prompting the need for these adjustments,” Busch explained.
While the management at Siemens appears optimistic about overall operations, it has not all been met with positivity from the employee sector. Heavy criticism arose from labor representatives about the upcoming reductions. Birgit Steinborn, chairwoman of the company’s central works council and deputy chair of the supervisory board, expressed deep concern: “We have no comprehension for the proposed measures within DI and are surprised and outraged at the magnitude of job cuts.” Steinborn urged for sustainable job creation rather than severance to bolster profit margins, which contradicts the company’s One Tech Company vision.
Similarly, Jürgen Kerner, the second vice-chairman of IG Metall and also on Siemens’ supervisory board, articulated skepticism: “Conceiving of a forward-thinking One Tech Company initiative on one hand and simultaneously reducing thousands of positions fails to resonate with employees,” he emphasized. Kerner elaborated on achieving transformation through advancement rather than job elimination, stating, “You don’t navigate transformation through layoffs. It is fundamentally through progress and development of skills.”
Interestingly, though the immediate outlook is mixed with the job cuts on the horizon, Siemens’ stock has shown some resilience, temporarily trading higher at €237.35, marking a 1.30 percent increase on the XETRA platform.
The specific locations for the job cuts within Germany are yet to be confirmed, but industry observers anticipate significant impacts around Bavaria, as it houses many of Siemens’ Digital Industries facilities. Further, as Siemens endeavors to remain agile within the competitive market, its strategic focus now increasingly pivots toward growth segments such as rapid charging infrastructure for electric vehicles, hinting at a more dynamic company future amid challenges.
Looking beyond the immediate turmoil of workforce reductions, Siemens’ leadership is optimistic about tapping innovative and high-potential markets, positioning itself within sectors expected to experience significant growth.
Nonetheless, for current employees facing uncertainty over their careers, the anxiety stemming from impending job cuts poses significant challenges, and the coming months will likely test the company’s commitment to its workforce as they navigate this transitional phase.
