Siemens has announced plans to reduce its workforce within the Digital Industries division as part of a strategic restructuring of its industrial automation business. The German technology conglomerate plans to cut approximately 5,600 positions worldwide, including 2,600 roles in Germany, in response to weakened demand and shifting market dynamics. First announced at Siemens’ Annual Press Conference in November 2024, the restructuring is expected to be completed by the end of fiscal year 2027.
The move comes as the global automation sector faces increasing pressure, particularly in key markets such as Germany and China, where orders and revenue have declined over the past two years. Siemens, however, expects to maintain a stable overall headcount in Germany, as hiring in high-growth sectors offsets job reductions. The company has ruled out operational-related redundancies in Germany, stating that affected employees will be offered reskilling and internal job placement opportunities. Siemens currently has over 7,000 open positions worldwide, including 2,000 vacancies in Germany.
“Global demand for automation technology is intact over the long term,” said Siemens. “However, the shift of growth away from current key markets such as Germany has made a structural adjustment of capacities necessary.”
Siemens’ Digital Industries division provides automation, software, and digitalisation solutions to a wide range of industrial sectors. The business specialises in factory automation, offering numerical control systems, industrial drives, control systems, sensors, and Internet of Things (IoT)-based solutions that optimise production.
Additionally, the division provides software for product lifecycle management, industrial simulation, and digital twin technologies, allowing manufacturers to enhance efficiency, reduce downtime, and integrate automation into their operations.
With its broad portfolio, Siemens is a major supplier of automation solutions to industries such as automotive, pharmaceuticals, chemicals, food and beverage, electronics, and semiconductors. The company’s MindSphere platform, a cloud-based industrial IoT operating system, plays a critical role in connecting physical and digital infrastructure, enabling businesses to monitor and optimise manufacturing processes in real-time.
Restructuring to address market challenges
Since fiscal year 2023, Siemens’ industrial automation business has experienced weakened demand in key regions, while competition in the automation sector has intensified. Although global demand for automation technology remains strong, regional shifts in market growth have necessitated a realignment of the company’s business strategy.
To address these challenges, Siemens is focusing on optimising its sales strategies, fostering collaboration between business units in product development, and increasing flexibility within its global factory network. These adjustments are expected to improve efficiency and enhance competitiveness in a rapidly evolving market.
Despite workforce reductions, Siemens has reaffirmed its commitment to Germany as a business and innovation hub. As part of a €2bn global investment strategy, the company has earmarked €1bn for Germany, including €500m for a new research and high-tech manufacturing campus in Erlangen. This new facility will serve as a global centre for technology development and industrial metaverse advancements.
Siemens currently employs approximately 86,000 people in Germany and has stated that internal job placement and skill development will be prioritised as part of its long-term workforce strategy.
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