Workforce Growth

Siemens' Untold Story of Expansion

  • Why it matters

    Why it matters

    Siemens job reductions have been highly publicized, but while the company is downsizing some units, others are growing bigger.

  • Facts

    Facts

    • Globally, the company’s number of employees worldwide increased from 348,000 to 351,000 during the last fiscal year.
    • Its German workforce declined slightly to 113,400.
    • According to Handelsblatt information, its core business in power and gas saw a decline from more than 50,000 to slightly less than 49,000 employees due mainly to excess capacity in the gas turbines market.
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    Audio

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Jahreswechsel
Siemens workers protest job cuts. Source: DPA

Another year goes by, another announcement of more job cuts from German engineering heavyweight Siemens in one of its technology divisions.

In 2016, it was the Process Industries and Drives Division (P&D) that was downsized. Because of homegrown problems and the impact of the low oil prices, the company announced the elimination of 2,500 jobs around the world last spring. In Germany, 1,700 positions were ultimately affected, somewhat fewer than originally planned.

However, upon closer scrutiny, Siemens’ figures turn out to be more positive than one might expect. Globally, the company’s number of employees increased from 348,000 to 351,000 during the last fiscal year. Its German workforce declined slightly to 113,400.

Chief Executive Joe Kaeser complains that the public is only interested in hearing about cuts. “We add far more than we lose. But unfortunately, I most often read on the front page, ‘Siemens Eliminates 2,500 Jobs,’” he said at a press conference where he presented the annual figures. The company hired 31,500 people during the last fiscal year; 4,600 of which were in Germany. Most of the new hires were due to fluctuation – positions that became free were filled.

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