German engineering firm Siemens has announced plans to lay off 5,600 employees from its global workforce by 2027. The layoffs will affect 8% of the company’s 68,000-strong workforce in its Digital Industries business.
The company’s overall headcount globally stands at 312,000. According to reports, this is the German firm’s biggest round of layoffs since 2017.
"Since the start of fiscal 2023, muted demand—primarily in the key markets of China and Germany—coupled with increased competitive pressures has considerably reduced orders and revenue in the industrial automation business," Siemens said in a statement on March 18.
The firm said the cuts would affect about 2,600 jobs in Germany, with around 450 jobs impacted in its electric vehicle charging business worldwide. The company claimed that despite the job cuts, Siemens’total headcount in Germany will likely “remain stable due to hiring in other, growing areas.”
“Global demand for automation technology is intact over the long term. However, the shift of growth away from current key markets such as Germany has made a structural adjustment of capacities necessary,” Siemens said.
Layoffs After a Troubled Quarter
The company's Q1 results beat forecasts, with industrial profit down 8% to €2.52 billion ($2.63 billion) but revenue up 3% to €18.35 billion. While orders were lower than last year, they still exceeded expectations.
"Europe, our key region, continued to lag. Germany, in particular, was still in crisis mode, with companies and society urgently awaiting clarity and action from a new government," CEO Roland Busch said last month.
He also noted that revenue at the automation business within Digital Industries remained low due to ongoing destocking. However, this decline was partially offset by a 15% increase in the software business.
In 2024, Siemens announced plans to carve out its electric vehicle charging business to capitalise on opportunities in the dynamic market.
"The market is currently characterised by strong price pressures and limited growth potential for low-power charging stations," the company said.
Adding that they aim to focus on high-growth segments like fast-charging infrastructure while adopting a regional approach to accommodate diverse charging standards.
