New Delhi, March 20: Siemens will reportedly lay off around 5,600 employees from its Digital Industries division amid market challenges. These Siemens layoffs are said to impact approximately 8% of the company’s total workforce. The company is reportedly making adjustments to its production capacity and job cuts come as a response to weak demand in markets like Germany and China.

As per a report of Reuters, Siemens plans to lay off 5,600 jobs in its Digital Industries division, because of poor market conditions in Germany and China. These layoffs will likely impact around 8% of the 68,000 employees working in this division around the world. It is the largest number of layoffs Siemens has announced since 2017, with 2,600 jobs being axed in Germany. Morgan Stanley Layoffs: US-Based Investment Banking Giant To Cut 2,000 Jobs to Improve Its Overall Efficiency, Say Reports.

Additionally, the company has reportedly announced plans job cuts of about 450 employees in its electric vehicle charging division. Digital Industries was considered the leading division of Siemens, known for having the highest profit margins in the company due to its controllers and factory software.

However, Siemens, which has a global workforce of 3,12,000, has reportedly stated that weak demand in important markets like China and Germany, along with rising competition, has significantly decreased orders and revenue in the industrial automation sector over the past two years.

Managing board member Cedrik Neike reportedly defended the job cuts by stating that Siemens' automation business needs to become faster and more agile. Neike further emphasised the importance of achieving a more regionally balanced approach and expanding the customer base. Amazon Layoffs: E-Commerce Giant To Lay Off up to 14,000 Employees Globally To Save Billions, Limit Hiring in Early 2025.

However, Juergen Kerner, vice chairman of IG Metall and a member of Siemens' supervisory board, reportedly stated that transformation should not be achieved through downsizing. Kerner highlighted that positive change comes primarily from further development and training of employees, rather than through job cuts.

(The above story first appeared on LatestLY on Mar 20, 2025 03:18 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).