Siemens announces global layoffs amid tough competition

In March 2025, Siemens, a German multinational technology company, revealed plans to cut its global workforce as part of a major restructuring initiative. The decision, which will affect more than 5,600 employees worldwide, is driven by rising competition and decreasing demand in crucial markets such as China and Germany. The layoffs will primarily impact Siemens’ Digital Industries business, which consists of around 68,000 staff currently. Among the anticipated job cuts, 2,600 will specifically affect employees in Germany, necessitating structural adjustments to match the evolving market conditions. The reductions are expected to be realized by the end of 2027, as Siemens adjusts its capacities and strategies to align with current market trends. The company has cited a period of muted demand that began in fiscal 2023, influenced by factors such as increased competition, which have severely reduced orders and revenue in the industrial automation sector. Siemens acknowledges the long-term stability of demand for automation technology; however, shifts in growth trends have prompted a re-evaluation of its operational capacities in key markets. In conjunction with job cuts, Siemens aims to reorient its efforts toward new growth opportunities, particularly within the burgeoning electric vehicle charging sector. Currently, the company employs 1,300 individuals in this area, but 450 jobs are anticipated to be affected by the layoffs, with adjustments expected by the end of 2025. These strategic realignments entail not only focusing on innovations in fast-charging infrastructure but also potential developments in depots and fleets related to electric vehicles. As part of the restructuring efforts, Siemens also intends to offer reskilling and upskilling opportunities for those affected by the layoffs. This approach underscores the company's commitment to supporting its workforce through this transition, providing job placement opportunities within its organization, which currently has over 7,000 job vacancies, including 2,000 in Germany. The recent announcements reflect a response to the dynamic and competitive nature of global markets, highlighting Siemens' need to remain agile and competitive in the face of challenges.