Siemens is expanding its presence, encircling Eintracht on all sides. - Siemens consistently engages in construction projects at Eintracht on occasion.
In a significant move, Siemens has announced a transformation agreement in Germany, which includes job cuts, wage improvements, and a substantial financial investment to modernize operations and strengthen competitiveness.
Approximately 10,000 employees in Germany are impacted by the transformation agreement, which involves job reductions as part of the company's restructuring efforts. The affected employees include those from the Digital Industries division and the business with charging solutions for electric vehicles.
Siemens is carrying out a planned reduction in workforce to adjust its business scope and improve operational efficiency. This is part of a broader transformation strategy to adapt to digitalization and automation challenges.
Alongside workforce reductions, Siemens has negotiated wage increases and improved social safeguards for the remaining employees. This includes enhanced social benefits and retraining programs to help workers adapt to new roles. More than half of the affected employees in Leipzig, where 160 jobs in charging solutions are being cut, have been offered alternative positions at the same location.
Siemens is investing approximately €250 million (about $294 million) in upgrading its manufacturing facilities in Germany, notably its train manufacturing site in Munich-Allach. This investment covers new infrastructure, modern production equipment, and advanced AI-based software solutions aimed at increasing production capacities and competitiveness in the global market.
In addition, Siemens is planning to invest 50 million euros on a transformation fund for further training. This fund will provide opportunities for employees to acquire new skills and adapt to the changing business landscape.
IG Metall, the powerful German metalworkers' union, is likely to be involved in the discussions. The goal is to find solutions where people do not leave the company but move from position A to position B. The transformation agreement aims to actively shape rapid changes and become faster without undermining co-determination.
Cross-site collaboration between local works councils and the company side is being worked on for hiring and transfers. The workforce in total is expected to remain the same.
The unequal treatment under the "Collective Agreement Special Agreement" is no longer tenable. Significant wage improvements will be made for around 11,000 previously disadvantaged employees. These employees will be brought up to the level of the metal and electrical industry collective agreement over a period of five years.
The changes are being discussed in Munich, Germany, and the job cuts in Leipzig are still ongoing. The agreement aims to find solutions where people do not leave the company but move from position A to position B, ensuring a smooth transition for the affected employees.
Siemens' transformation agreement in Germany demonstrates a commitment to balancing competitiveness with employee welfare during a period of essential modernization. The company's investment and transformation measures are a testament to this commitment, providing opportunities for employees to grow and adapt while ensuring the company's long-term success.
Siemens' investment of €250 million in modernizing their manufacturing facilities, including the installation of advanced AI-based software solutions, will likely facilitate vocational training for employees in the use of technology, thereby enhancing their skills and facilitating their transition to new roles within the business. Additionally, the establishment of a transformation fund to the tune of 50 million euros, aimed at further training, signifies a significant financial commitment to vocational training and business growth.
