Massive Siemens restructuring: Job cuts, EV charging shift, and a billion-Euro investment

Siemens AG is implementing a major workforce restructuring plan to strengthen its industrial automation business and electric vehicle charging business, as shifting market conditions prompt a strategic realignment. The company announced plans to eliminate approximately 6,050 jobs worldwide, including 2,850 positions in Germany, while emphasizing that operational-related redundancies will not occur in Germany. Siemens is focusing on growth markets, particularly in automation and high-power EV charging infrastructure, to enhance its long-term competitiveness.

The move comes as the industrial automation market faces weakened demand in key regions such as China and Germany, where economic slowdowns have weighed on orders. Meanwhile, the electric vehicle charging industry has seen rapid shifts in demand, prompting Siemens to pivot towards fast-charging solutions for commercial fleets and highway corridors.

Why Is Siemens Restructuring Its Automation Business?

Siemens’ Digital Industries division, which oversees its industrial automation business, has been significantly affected by declining demand in China and Germany. While global automation needs remain strong, Siemens faces increased competitive pressures and a regional shift in market growth, requiring an adjustment in operational capacity.

Since fiscal 2023, demand in these key regions has been muted, leading to a decline in orders and revenue. China’s manufacturing sector slowdown and Germany’s broader industrial contraction have contributed to Siemens’ decision to realign its sales strategy, product development collaboration, and global manufacturing footprint. The company believes this restructuring will allow it to optimize efficiency and improve flexibility in its production network.

Siemens first signaled these planned adjustments during its Annual Press Conference in November 2024. As part of the restructuring, the Digital Industries division, which currently employs approximately 68,000 people globally, will see 5,600 job reductions worldwide, including 2,600 in Germany. These cuts will be implemented gradually, with completion expected by fiscal 2027.

Despite the job reductions, Siemens maintains that its total workforce in Germany will remain stable. The company is actively hiring for growth-focused roles, particularly in areas such as industrial AI, digital twin technology, and smart manufacturing solutions.

How Is Siemens Adjusting Its EV Charging Strategy?

The electric vehicle charging market is undergoing rapid transformation, with the sector shifting towards high-power charging solutions to meet the demands of fleet operators and long-distance travel. Siemens, which announced its intention to carve out its EV charging division in September 2024, is now focusing on fast-charging infrastructure for commercial depots, fleet management hubs, and highway en-route charging stations.

The decision comes amid intense price competition in the EV charging market. The lower profitability of low-power charging stations, combined with regional differences in charging standards, has prompted Siemens to realign its approach and prioritize high-value segments. By regionalizing its operations, Siemens aims to respond more efficiently to market-specific charging infrastructure needs.

Siemens currently employs over 1,300 people in its EV charging business, with 450 positions set to be eliminated globally, including 250 in Germany. The restructuring will be finalized by the end of fiscal 2025.

How Have Markets Responded to Siemens’ Strategy?

Despite concerns over workforce reductions, Siemens’ restructuring efforts have not significantly impacted its stock performance. As of March 19, 2025, Siemens AG’s stock closed at €236.70, reflecting a modest decline of 0.13% from the previous trading session. Over the past month, the stock has seen fluctuations, peaking at €244.85 on March 6 before stabilizing.

Analyst sentiment remains largely positive, with 31 Buy ratings, 2 Hold ratings, and only 1 Sell rating in the past month. The 12-month average price target for Siemens AG is €232.17, suggesting analysts view the company’s long-term prospects as favorable despite short-term challenges. Siemens’ ADRs (traded in the US) have also received an Overweight rating, with a price target of $127.75.

Financially, Siemens remains in a strong position. In its first fiscal quarter of 2025, the company reported a net income of €3.71 billion, significantly up from €2.39 billion a year earlier. However, income from continuing operations declined by 30% to €1.80 billion, reflecting restructuring costs and shifting revenue patterns. The company reaffirmed its fiscal 2025 guidance, projecting 3% to 7% revenue growth and earnings per share (excluding one-time gains) of €10.40 to €11.00.

What Is Siemens’ Long-Term Vision for Growth?

Even as Siemens restructures parts of its business, it remains firmly committed to Germany as a core hub for innovation and manufacturing. The company is investing €1 billion in Germany as part of its €2 billion global investment plan, announced in 2023.

One of the most significant projects within this initiative is Siemens’ €500 million investment in a new research and high-tech manufacturing campus in Erlangen, Germany. The facility will serve as a global hub for industrial metaverse development, focusing on AI-driven automation, digital twin technology, and smart factory innovations.

Siemens also emphasized its commitment to re-skilling affected employees. The company has 7,000 open positions globally, including 2,000 in Germany, offering opportunities for job transfers and upskilling programs. Additionally, Siemens expects natural workforce attrition through retirements to help manage the transition.

What Does Siemens’ Strategy Mean for Investors and the Industry?

Siemens’ restructuring reflects broader industry trends in industrial automation and EV charging. The automation sector is evolving rapidly, with increasing demand for AI-integrated solutions, robotics, and smart factory innovations. Siemens’ Digital Industries division is strategically repositioning itself to capitalize on emerging automation markets outside of Germany and China.

The EV charging industry, meanwhile, is shifting towards high-speed, networked solutions for commercial fleets. Siemens’ decision to focus on fast-charging infrastructure positions it well against competitors who remain tied to lower-margin, consumer-oriented solutions.

Analysts have largely endorsed Siemens’ long-term strategic direction, viewing the focus on growth markets, high-value segments, and efficiency improvements as positive indicators. However, some concerns remain over short-term revenue impacts and the execution of workforce adjustments.

Given Siemens’ strong financial performance, robust market positioning, and commitment to future investments, many experts recommend a ‘Hold’ position on Siemens stock. While the restructuring is necessary for long-term competitiveness, investors may want to monitor how effectively Siemens manages its workforce transition and whether it can successfully capture new growth opportunities in automation and EV charging infrastructure.