Siemens to cut a third of jobs in EV charging business
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Siemens is planning to cut a third of its electric vehicle charging business as part of 5600 job cuts in its industrial automation business.
There will be 450 job cuts in the newly formed EV charging business which has 1300 staff, or a third of roles as it changes its strategy. 250 of these will be in Germany by the end of the year.
The cuts in the Digital Industries division, which includes the Xcelerator and Siemens EDA activities and employs 68,000 people, are focussed on the industrial automation business, a reduction of 8%.
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The company cites changed conditions in the key markets of Germany and China have made capacity adjustments necessary in both cases. For two years, the German market, in particular, has been declining and haven’t recovered as expected. As a result, production capacity for equipment in Germany will have to be adjusted it says.
2600 roles will be cut in Germany but the total headcount will tend to remain stable due to hiring in other, growing areas and there will be no operational layoff in Germany, it says. However that does not apply internationally to the other 3000 roles by the end of 2027.
The cuts will come from a realignment of sales activities, cross-unit collaboration in product development and a more flexible management of the global factory network.
Global demand for automation technology is intact over the long term but the growth has shifted away from current key markets such as Germany
The EV charger market is facing strong price pressures and limited growth potential for low-power charging stations. As a result the division is shifting to fast-charging infrastructure for depots and fleets and for en-route charging through its acquisition of the Heliox in 2023.
The company is also setting up a more regional approach for markets with sometimes different charging standards to be able to serve the markets faster and in a more targeted manner.
As far as possible, the people affected are to be offered opportunities for re- and upskilling. Job placement inside the company will also play a key role in implementing the measures as there are currently more than 7,000 open positions at Siemens, of which about 2,000 are in Germany.
The company is emphasising its commitment to its home market, Of the €2 billion in global investments announced in 2023, €1 billion is earmarked for Germany. This includes €500 million for Siemens’ new campus for research and high-tech manufacturing in Erlangen, Germany, where the company is establishing a global centre for development and manufacturing and a springboard for technology-related activities to drive the industrial metaverse.
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