Siemens to Cut 6,000 Jobs Worldwide Due to Weak Demand and Competition
Global Industrial Giant Struggles with Slowdowns in China and Europe
German industrial giant Siemens announced plans to cut over 6,000 jobs worldwide due to weak demand and increasing competition in China and its home market. The reductions, equivalent to about 2% of Siemens’ global workforce, will primarily affect its factory automation unit, with a small number of positions lost in its electric vehicle charging business.
Reasons Behind the Job Cuts
"Muted demand primarily in the key markets of China and Germany coupled with increased competitive pressures have considerably reduced orders and revenue in the industrial automation business," said the group in a statement. The goal is to strengthen the future competitiveness of the affected businesses and enable investments in growth markets.
Impact on Employees
For employees affected by the layoffs in Germany, Siemens will seek to find some of them new roles within the group. Some jobs will also be lost through people retiring. At the end of last year, Siemens employed about 313,000 people worldwide, including about 86,000 in Germany.
Job Cuts by Business Unit
About 5,600 of the job cuts will be made by 2027 in the automation business, which supplies robotics, other machinery, and industrial software to factories. About half the roles lost will be in Germany. In its vehicle charging business, the group plans to cut 450 positions from a total of 1,300 employed in the operation worldwide by the end of the current financial year.
Focus on Growth Markets
Siemens plans to focus on areas like fast-charging infrastructure, citing "limited growth potential for low-power charging stations." German carmakers and their suppliers alike have been facing severe headwinds due to a slowdown in demand for electric cars.
Conclusion
Siemens’ decision to cut 6,000 jobs worldwide is a response to the company’s struggles with weak demand and increasing competition in key markets. While the job cuts will affect a significant number of employees, the company aims to strengthen its competitiveness and invest in growth markets. The impact on employees will be managed through a process of finding new roles within the group and supporting those retiring.
Frequently Asked Questions
Q: Why is Siemens cutting 6,000 jobs worldwide?
A: Siemens is cutting jobs due to weak demand and increasing competition in China and its home market, particularly in its factory automation unit.
Q: Which business units will be affected by the job cuts?
A: The job cuts will primarily affect the factory automation unit, with a small number of positions lost in the electric vehicle charging business.
Q: How many jobs will be lost in Germany?
A: About 5,600 of the job cuts will be made in Germany, with about half the roles lost in the factory automation business.
Q: What is the total number of employees affected by the job cuts?
A: About 6,000 employees will be affected by the job cuts worldwide.
