Foreign media: Siemens will lay off 5,600 people in the digital industries division
Siemens announced that it will lay off 5,600 employees in its digital industries division, accounting for about 8% of its global workforce of 68,000. This layoff is the largest since 2017, with 2,600 positions being cut in Germany. The company stated that weak demand in key markets and competitive pressure have led to a significant decrease in orders and revenue for its industrial automation business, with profits in the digital industries dropping by one-third. Additionally, the electric vehicle charging business will also lay off 450 employees
According to Reuters, Siemens announced on Tuesday that it will lay off 5,600 employees in its digital industries division, marking the latest blow to German industry due to weak domestic and foreign demand.
The layoffs are slightly above 8% of its 68,000 global workforce in the digital industries division. This is the largest number of layoffs announced by Siemens since 2017, with 2,600 positions being cut in Germany, although Siemens stated it remains committed to keeping its home country as a business location.
The report mentioned that digital industries has been the crown jewel of Siemens, with the highest profit margins from its controllers and factory software. Siemens, which has 312,000 employees worldwide, stated that "weak demand in major markets, coupled with increased competitive pressure, has significantly reduced orders and revenues in the industrial automation business over the past two years." In the most recent quarter, Siemens' profits in the digital industries fell by one-third.
The report also noted that Siemens announced on Tuesday that its electric vehicle charging business will also lay off 450 employees, accounting for one-third of its total workforce
