Layoff News: In February this year, Siemens CEO Roland Busch said that there are signs of recovery. However, now the company has suddenly announced layoffs, indicating that everything is not going well. Now the company has announced that it will lay off about 6 thousand workers, out of which about half of the employees may be laid off in Germany.
Layoff News: Siemens AG is preparing for large-scale layoffs. According to a report by news agency Bloomberg, the company plans to lay off about 600 workers, out of which about half of the employees may be laid off in Germany. According to the report, Siemens has taken this decision because it wants to save some money in its factory automation business, which is facing weak demand. According to the statement released by the company on Tuesday, by the end of the financial year 2027, it will lay off about 5600 from the Digital Industries Unit, out of which 2600 will be in Germany, while in the electric vehicle charging business, about 450 employees will be laid off this year, out of which 250 will be from Germany.
68 thousand employees are working in automation business
About 68 thousand employees are associated with Siemens’ automation business. It has been hit by weak demand in China and the company had indicated last year in 2024 that discussions were going on regarding layoffs. In February this year, the company’s CEO Roland Busch said that there were signs of recovery. However, now the company has indicated that all is not well by suddenly announcing layoffs. The charging business, which Siemens wants to pursue, has also suffered a setback due to strong price competition and limited growth prospects.
German industries are working on cost savings
In Germany, industrialists are currently adopting cost savings methods to deal with weak demand and declining profitability. Volkswagen AG plans to cut 7500 jobs in Germany by 2029. At the same time, the VW brand also plans to lay off more than 35 thousand employees in Germany in the next five years. Car suppliers Robert Bosch GmbH, Schaeffler AG and ZF Friedrichshafen AG are also planning to cut thousands of jobs in the coming years.
