Following the bankruptcy of KTM AG and the closure of the Schaeffler plant in Berndorf, Lower Austria, at the end of 2025, this week brings a third piece of bad news: Siemens is closing its industrial power supply plant in Vienna by the end of 2026. The 178 affected employees will be offered job opportunities within the company. Given the current situation, IV President Georg Knill has called for swift action from the government.
“Currently, Siemens in Austria has about 100 open positions,” stated the German electronics giant regarding its internal job placement efforts for the affected workers. The reason for the closure, according to Siemens, is to strengthen its competitiveness by adjusting global capacities in the automation sector. “Part of these measures include changes in the industrial sector at Siemens Austria,” the company explained. At the same time, European production capacities at the plant in Sibiu, Romania, will be “utilized as needed,” Siemens said in a press release on Thursday. This measure will leverage synergies in the region managed by Austria.
The global management of industrial power supplies, including the research and development center and product and quality management, will remain in Vienna. Siemens Austria employs around 9,300 people, with a revenue of 3.2 billion euros in the 2023 fiscal year. From Vienna, Siemens Austria oversees operations in 25 additional countries.
Yesterday, the German auto supplier Schaeffler announced the closure of its plant in Berndorf, Lower Austria, by the end of next year. 450 employees will be affected. It had previously been revealed that the traditional Upper Austrian company KTM had gone bankrupt. The Pierer Mobility subsidiary is currently preparing an application for a reorganization procedure under self-administration, which will be filed on Friday.
Alarm Raised by the Federation of Austrian Industries
The Federation of Austrian Industries raised an alarm on Thursday. “Every day we hear new reports of companies facing difficulties. Plant closures, layoffs, salary negotiations, and bankruptcies are on the rise,” lamented IV President Georg Knill in a statement. “We have been warning for months about similar scenarios — what more has to happen for the government to take action?” he asked, directing his concerns to the politicians. However, a new government is still in negotiations, and it may take some time before it is in place.
According to the industrial representative, the reasons are “varied and unfortunately also self-inflicted.” Knill particularly pointed to “high inflation and irresponsibly high wage agreements in recent years.” Since 2021, labor costs in Austria have risen by 30.2%, while in Germany, they have only increased by 14.3%, and in Italy, by just 7.1%, Knill reported. As a result, the country’s competitiveness is suffering significantly. With KTM, the primary company of the IV’s Upper Austrian President, Stefan Pierer, has announced a bankruptcy application for tomorrow, Friday.
