Siemens, the multinational technology company based in Munich, recently announced plans to cut around 6,000 jobs globally, with 2,850 positions affected within Germany. This decision primarily impacts the struggling Digital Industries (DI) division, which has been facing significant economic pressure due to high inventory levels among customers and weak demand.
According to reports, the company intends for these cuts to take place without any mandatory layoffs, ensuring the job losses are achieved through voluntary departures. The scheduled cuts will see 5,600 jobs slashed from the automation sector by the end of September 2027, of which 2,600 will be located within Germany. The downturn also extends to Siemens' divisions associated with electric vehicle charging solutions, which will see the reduction of 450 jobs internationally, including 250 positions within Germany.
Siemens' management noted, "The German market has been declining for two years; hence, adjustments are needed to match capacity here." This strategic decision aligns with the company's broader goals to streamline operations even as it recorded profits of 2.1 billion euros during the first quarter of this year, indicating relatively stable overall business health.
Despite the impending cuts, Siemens has emphasized its focus on recruitment within other, more prosperous sectors of the business. The company aims to maintain total staff levels relatively stable across the country by hiring for these growing sectors, with plans to offset job reductions through strategic hiring elsewhere.
Specific locations within Germany where these job cuts will occur have not yet been disclosed, but industry experts suggest areas like Bavaria may be significantly affected, as many DI facilities are rooted there. The Erlangen site, for example, has already been mentioned as significantly impacted by these decisions.
Labor unions and employee representatives have expressed strong criticism of Siemens’ plans. Birgit Steinborn, chairwoman of the overall works council and deputy chair of the supervisory board, remarked, "We are surprised and angry at the massive job cuts planned within the Digital Industries division.”
Steinborn emphasized the dual objectives Siemens seems to pursue: on one hand, enhancing operational efficiency under the guise of becoming “One Tech Company,” and on the other, implementing significant layoffs. Jürgen Kerner, the second chairman of IG Metall, similarly critiqued the contradictory nature of Siemens' approaches. "It is difficult to communicate to employees how the vision of transforming the company aligns with such drastic job reductions," he stated.
Kerner stressed the importance of fostering trust with employees as the company undergoes this transformation. He asserted, "You do not manage change through job cuts but rather through growth and employee development. It’s concerning how the company believes it can achieve its revamped structure through such austerity measures.”
Siemens’ planned job reductions come amid increasing competition and technological evolution within the industries it serves, where adaptability is increasingly necessary. The company publicly stated, "We need to adapt our capacities to meet the changing demands of central markets," demonstrating awareness of the shifting industrial landscapes they navigate.
Looking forward, the concern for affected employees mounts as they await more information about their respective fates. While these accommodations aim to stabilize Siemens’ competitive positioning, the dual challenge of transitioning business focuses toward more future-proof industries and coping with workforce reductions remains at the forefront of discussions among stakeholders.
Overall, Siemens seems poised to undergo significant changes to its staff structure, marking another phase of transition as companies frequently adjust operations to align with market needs. With arguments swirling around how effective such measures will be, all eyes will be on Siemens as it navigates through its stakes and its vision for sustainable future growth.
