German engineering giant Siemens AG has announced plans to reduce its global workforce by approximately 6,000 as part of a cost-saving initiative. Most of these job cuts will impact its factory automation business, which has been struggling due to weakened demand, particularly in China.
Siemens stated that around 5,600 positions within its digital industries unit will be eliminated by the end of fiscal 2027, with 2,600 of those layoffs occurring in Germany. The company’s electric vehicle (EV) charging business will also trim about 450 jobs this year, including 250 in its home market. This move comes as Siemens aims to optimize operations and improve financial performance in response to industry-wide challenges.
The factory automation division, which employs roughly 68,000 people, has been facing a downturn in demand, particularly in China. Although Siemens CEO Roland Busch hinted at a potential recovery in February, the company is taking proactive measures to maintain profitability.
Meanwhile, Siemens is considering carving out the EV charging business. This business is under pressure due to intense price competition and limited growth opportunities. The job cuts in this sector represent approximately one-third of Siemens’s total workforce.
Siemens’ decision follows a broader trend among German industrial giants seeking efficiency amid economic headwinds. Volkswagen AG’s Audi plans to cut up to 7,500 jobs in Germany by 2029, while the Volkswagen brand itself intends to reduce over 35,000 domestic positions within five years. Other major automotive suppliers, including Robert Bosch GmbH, Schaeffler AG, and ZF Friedrichshafen AG, have also announced significant job reductions.
