Siemens Plans Job Cuts in Automation Amid Profit Decline
Siemens has announced plans to cut up to 5,000 jobs worldwide in its struggling factory automation division. The move follows a significant 46% drop in profit for the company’s flagship digital industries business, which has faced challenges amid changing market dynamics.
Automation Business Faces Setbacks
Speaking on Thursday, Siemens CEO Roland Busch explained the rationale behind the cuts, stating, “Sometimes we have to do some re-engineering because the developments weren’t as positive as we expected them to be.” While the exact number of layoffs is yet to be determined, Busch indicated the cuts would amount to a “low- to medium-sized four-digit” figure.
The company’s digital industries arm, employing 70,000 people globally, has been under pressure as it navigates declining profits and shifting market conditions.
Long-Term Automation Potential
Despite the current challenges, Busch expressed optimism about the future of the automation market, citing opportunities in addressing labor shortages and the relatively low levels of mechanization at small and medium-sized enterprises. “The long-term potential for automation remains strong,” he added.
Siemens’ decision highlights the ongoing adjustments multinational corporations must make to stay competitive in evolving markets while balancing short-term setbacks with long-term growth strategies.
