Outplacement in electrical engineering

Electrical engineering is one of the key sectors of the industrial transformation. Electrification, renewable energy, automation, industrial AI, semiconductors, digitalisation and new energy-efficiency requirements are changing products, markets and business models. At the same time, after several difficult years, the sector is under cost pressure.

The German electrical and digital industry is one of the country's most important industrial sectors: in 2025 it generated around €226.8 billion in revenue and employed about 879,000 people domestically — the second-largest industrial sector in Germany by headcount. Around 60% of employees are STEM specialists.

After three difficult years, the ZVEI expects real production growth of around 2% for 2026. At the same time, the sector is investing heavily in industrial AI: almost every second company already uses such applications productively.

So electrical engineering is not a classic shrinking sector. But it is undergoing a profound technological and economic change. And this change also reshapes careers.

Why electrical engineering is in structural change

The sector benefits from several long-term growth drivers — while these very drivers change its products and organisational structures: electrification, the energy transition, automation, digitalisation, artificial intelligence, semiconductors, smart infrastructure, cybersecurity and decarbonisation. Electrical engineering is thus increasingly becoming a cross-cutting technology of the entire economy — in machines, vehicles, buildings, power grids, medical technology, energy plants and logistics.

It is not only vehicles that are electrified, but also industrial processes, heating, buildings, grids and production plants. This increases demand for power electronics, control technology, automation, sensor technology, grid technology and energy management. Electrical know-how remains important — but the interfaces to energy, software and digitalisation grow ever more relevant.

From Industry 4.0 to Industrial AI

The next stage of digitalisation is artificial intelligence. Networked systems not only capture data but increasingly recognise patterns and support or make decisions. "Automating" increasingly becomes "steering intelligently" — in production plants, robotics, quality control, predictive maintenance, energy management and building automation.

A modern automation system no longer consists only of sensor + control + actuator, but increasingly of sensor + edge + software + data + cloud + AI + control. Value arises from the interplay of hardware and software. An engineer who can combine electrical engineering with software, data, AI and automation has a much broader profile than a specialist whose experience is limited to a single product category.

The sector grows — but not every function equally

Electrical engineering too shows the pattern: growth does not automatically mean growth in every function. While the sector grows overall, pressure on individual companies and business units can stay high — through relocation, automation, centralisation, outsourcing, standardisation, portfolio adjustments or cost-cutting programmes. This applies especially to the transformation from classic hardware production towards integrated hardware, software and data solutions.

Your market value is greater than your job title

Highly qualified specialists often define their market value too strongly through their specialisation. A "Head of Automation Technology" sounds very specific at first — but behind it can lie automation, electrical engineering, robotics, industrial IT, production optimisation, project management, digitalisation and leadership. That yields a profile reaching well beyond classic mechanical or plant engineering.

The central question is: "Which complex technical systems can I develop, automate or transform?" — not: "Which position as head of automation technology is advertised?"

Similarly for the "Senior Development Engineer Electrical Engineering": instead of "20 years developing electrical components", a competency analysis reveals electronics, systems development, embedded systems, automation, product development, quality management and project control — transferable to automotive, medtech, robotics, energy tech, industrial software and aerospace. The previous technology describes the origin of the experience. The competency profile describes the future market value.

Which competencies become more important

• Electrification — expanding electrical applications increases demand for systems and planning competence.
• Automation — productivity and skills shortages increase the pressure on automated processes.
• Industrial AI — almost every second company surveyed by the ZVEI already uses it productively.
• Software and embedded systems — electrical products become increasingly software-defined.
• Data competence — measurement, machine and operating data become the basis for optimisation.
• Cybersecurity — networked industrial systems must be protected against digital risks.
• Energy and sustainability competence — grid expansion, energy management and decarbonisation create new fields.

Electrical engineering as a key competence for future sectors

Electrical engineering sits at the interface of several major transformations — electrical engineering + energy, + automotive, + mechanical engineering, + medtech, + building technology, + IT, + aerospace. This makes a change of industry often easier than in highly industry-specialised professions:

Experience from electrical engineering	Conceivable target markets
Automation	mechanical engineering, logistics, automotive
Power electronics	automotive, energy, aerospace
Embedded systems	automotive, medtech, industrial tech
Energy technology	energy, infrastructure, industry
Building automation	real estate, energy, smart building
Control technology	industry, robotics, plant engineering
Quality management	automotive, pharma, medtech
Project management	energy, infrastructure, plant engineering
R&D	technology, automotive, medtech
Digitalisation	industrial tech, software, energy

A different logic applies to executives

A head of development in electrical engineering is hired not only for technical knowledge, but for innovation management, product strategy, technology roadmaps, digitalisation, international development, time-to-market, organisational development and leadership. "Head of Engineering Electrical Systems" can become: "Technology and transformation manager with international leadership experience in electrification, automation and digital product development."

For top managers, the question is: can this leader translate technological innovation into profitable value creation? Electrical engineering is the technological background; the actual market value lies in bringing technology, organisation and business together.

What affected professionals should do after job cuts

1. Analyse your competency profile. Which skills lie beyond the previous technology?
2. Quantify results. Which products, processes, projects or teams were developed successfully?
3. Determine future fields. How well does the profile connect to AI, automation, energy tech, smart infrastructure and software?
4. Widen target markets. Which industries seek the combination of technical and digital competence?
5. Sharpen your positioning. Which technological or economic problem does your profile stand for?
6. Open up the market deliberately. Besides job ads, networks, direct approaches and executive search matter — the core of our KARENT PLACEMENT approach.

What professional outplacement consulting can achieve

For electrical-engineering profiles, the challenge is usually not that the expertise has become worthless — it is interpreted too narrowly. Professional outplacement supports assessment, competency transfer, target-market analysis, repositioning, executive positioning, and network and interview strategy.

Electrical engineering drives the change

The sector is at once a winner and a shaper of the technological change: electrification creates new markets, automation raises productivity, AI changes industrial processes, software becomes part of electrical products, data becomes a factor of production. Often even more interesting than the classic electrical engineer is the combination of electrical engineering + automation, + software, + energy, + AI or + leadership.

A lost position does not mean technical know-how loses value. It can be the occasion to define your market value more broadly and open up new fields.