Strategic Focus on Growth Markets and Efficiency
Siemens is taking significant steps to strengthen its global competitiveness by restructuring its automation and electric vehicle (EV) charging businesses. The company aims to align its operations with evolving market conditions and shifting demand. Key strategies include expanding into high-growth automation markets and prioritizing fast-charging infrastructure for EVs. As part of these changes, Siemens will adjust its workforce worldwide, affecting approximately 6,050 jobs. However, the company remains committed to Germany as a central hub for innovation and development.
Automation Business: Adapting to Market Changes
The industrial automation sector has faced challenges due to decreasing demand in key markets such as Germany and China. Increased competition has further pressured revenue and orders, necessitating a structural shift. Siemens plans to realign sales strategies, enhance collaboration in product development, and optimize its global factory network. This restructuring will affect around 5,600 employees, with 2,600 job reductions in Germany. However, the company intends to maintain overall employment levels by creating new roles in other growth-oriented divisions. The changes, announced in late 2024, will be fully implemented by the end of fiscal 2027.
EV Charging Business: Focus on High-Speed Infrastructure
Siemens’ electric vehicle charging division is refocusing its efforts on fast-charging solutions for fleet depots and en-route charging stations. The current market conditions, characterized by price pressures and slow growth in low-power charging solutions, have prompted the company to shift its approach. Siemens plans to establish a more region-specific strategy to cater to diverse charging standards worldwide. The restructuring will impact approximately 450 jobs globally, including 250 in Germany. These adjustments will be completed by the end of fiscal 2025.
Continued Investment in Germany’s Future
Despite these workforce changes, Siemens reaffirms its commitment to Germany as a key business location. The company has pledged €1 billion for investments in the country, including €500 million for a new high-tech research and manufacturing campus in Erlangen. Additionally, Siemens is offering reskilling and job placement opportunities to affected employees, leveraging its 7,000+ job openings worldwide. By balancing workforce restructuring with strategic investments, Siemens aims to drive innovation and long-term sustainability in both automation and EV charging sectors.
