Siemens AG, a German technology and industrial group, has announced plans to adapt to the global market situation by cutting 6,000 jobs. The reduction, primarily affecting the digitalization division of factories, aims to adjust production capacity to the decline in demand. The company cites a drop in demand, particularly in the Chinese and German markets, combined with increased competitive pressure, as the reason for the job cuts.
Although the job cuts will mainly affect Germany, with around 2,850 positions being cut, the company emphasizes that the reduction will be made through voluntary departures rather than layoffs. In contrast, the Siemens Portugal unit does not expect any significant impact on its operations.
In fact, Siemens Portugal has been strengthening its teams in most areas, with over 80 new employees recruited in the first five months of the current business year. This brings the total number of direct workers to over 4,170. The company’s official source highlighted that Siemens Portugal continues to strengthen its teams, indicating that the job cuts do not apply to the Portuguese operation. The company’s emphasis on continued growth in Portugal suggests that Siemens is focused on investing in its Portuguese business and does not anticipate any significant disruptions to its operations there.
Overall, Siemens’ decision to cut jobs is a response to the challenging market conditions, particularly in its industrial automation sector, where orders and revenues have been negatively affected. The company’s strategy is to adapt to the new market reality by streamlining its production capacity and redeploying resources to areas with stronger demand. While the job cuts will likely have an impact on employees, particularly in Germany, the company’s Portuguese operation appears to be unaffected.