Siemens to cut many "Chief" titles and close software subsidiary evosoft

The “ONE Tech Company” restructuring of industrial giant Siemens is also expected to affect numerous management positions, according to a report. As Handelsblatt writes, citing industry circles, many “chief” titles are to be abolished. Currently, the group has hundreds of CEOs, CFOs, and other C-level positions for divisions or country organizations, for example. This is wild growth that does not fit the desired leaner organizational structure.

According to the insiders cited by Handelsblatt, many such titles up to the board level could be eliminated in the future or replaced by “Head of.” Siemens did not comment on this. Siemens CEO Roland Busch announced the “ONE Tech Company” strategy about a year and a half ago. Essentially, it is intended to simplify the group's complex structure and centralize it more.

The end for evosoft

Siemens also plans to close its software subsidiary evosoft in Nuremberg. By the end of next year, nearly 380 employees will lose their jobs, as reported by Bayerischer Rundfunk (BR). Employees were informed of the decision at a works meeting last week. Siemens cited a lack of orders and the intention to increasingly develop software solutions internally in the future, partly abroad.

This means evosoft is losing its most important client; according to BR, 95 percent of its orders came from the parent company. Negotiations with employee representatives are now to be held regarding a reconciliation of interests. Evosoft employees have been advised to apply for the approximately 2,000 open positions within the parent company.

According to the Handelsblatt report, the closure of evosoft is not directly related to “ONE Tech Company.” The software subsidiary has been heavily loss-making for years. For Siemens, the agreement that there will be no dismissals for operational reasons in Germany still applies.

“Many underestimate the effects”

Nevertheless, nervousness throughout the group is high. “Many still underestimate the effects,” Handelsblatt quotes an insider. The two core divisions, Digital Industries (DI) and Smart Infrastructure (SI), are to be retained for now, as are the six business units below them. However, functions such as those in the legal and HR departments are to be merged. In the technology sector, platforms for the entire group are to be developed more centrally, with only adjustments for individual industries and divisions.

Further restructuring next year is also not off the table, according to Handelsblatt, which could also include the dissolution of the DI and SI divisions. Business-wise, Siemens is currently doing well. For the fiscal year 2025, it achieved a record profit for the third consecutive year, booking a profit of 10.4 billion euros.

From the union side, there is also a green light for the group restructuring. “We support the concept of the integrated ONE Tech Company because, from today's perspective, it offers the best long-term prospects for Siemens. If any company can stand up to the American tech giants in industrial AI, it is Siemens,” said Jürgen Kerner, Deputy Chairman of the IG Metall trade union and Deputy Chairman of the Supervisory Board of Siemens AG. However, the announced changes are unlikely to be accompanied by job cuts.

(axk)