Siemens AG plans to reduce its global headcount by some 6,000 workers, with about half of the cuts coming in Germany, as the company seeks savings at its factory automation business that’s suffering from weak demand.
The digital industries unit will slash about 5,600 jobs by the end of fiscal 2027, 2,600 of them in Germany, while the electric-vehicle charging business will trim about 450 positions this year, including 250 in Siemens’s home market, the company said in a statement Tuesday.
The automation business, which employs about 68,000 people, has been hit by muted demand in China, and Siemens signaled last year that job cuts were on the horizon. Chief Executive Officer Roland Busch said in February that the unit was beginning to show signs of recovery.
German industrials are pushing ahead with cost savings measures in response to weak demand and eroding profitability. Volkswagen AG’s Audi plans to cut as many as 7,500 jobs in Germany by 2029, while the VW brand intends to reduce the workforce by more than 35,000 in its domestic market over the next five years. Car suppliers Robert Bosch GmbH, Schaeffler AG and ZF Friedrichshafen AG also plan to cut thousands of jobs in the coming years.
The charging business, which Siemens intends to carve out, is currently suffering from intense price competition and limited growth possibilities, Siemens said. The job reductions amount to about a third of the unit’s workforce.
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