Siemens has announced that it will part ways with approximately 6,000 employees globally. These layoffs, which will be carried out in the electric vehicle charging solutions and factory automation units, are planned to be completed by the end of fiscal year 2025. This unpleasant development has created a huge shock effect in the sector.

Siemens is making extensive layoffs

450 employees will be laid off in the company’s Smart Infrastructure unit, which develops electric vehicle charging solutions. It is stated that 250 employees will be laid off in Germany within this scope, while the remaining cuts will take place in different countries.

Siemens management states that the increasing competition and price pressure in low-power (Level 2) chargers are making profitability difficult. For this reason, the company has decided to direct its focus to more profitable areas such as fast DC charging stations and commercial fleet solutions.

Another area where the company is downsizing is factory automation. It was announced that 5,600 employees will be laid off in the Digital Industries unit. It is stated that this decision is due to weakening demand, especially in China and Germany.

Siemens opened a factory in Texas, USA, in 2023 to produce commercial Level 2 chargers. However, due to different charging standards in global markets, the company is said to follow a more localized strategy in the future.

So what do you think about this? Do you think Siemens’ new strategy will be successful in the long term? Which Siemens products do you use in your daily life? You can share your views with us in the comments section below.