Siemens to cut around 5,000 jobs in factory automation division
What's the story
Siemens is planning to layoff up to 5,000 workers in its factory automation division. The news comes from CEO Roland Busch, after the company's digital industries sector saw a major profit drop. "Sometimes we have to do some re-engineering because the developments weren't as positive as we expected them to be," Busch said.
Financial fallout
Profit plunge triggers restructuring
The decision to downsize comes after Siemens's digital industries business witnessed a 46% profit plunge. "This means we are going to have a low- to medium-sized four-digit amount which will affect some areas," Busch explained. The exact number of job cuts has not yet been finalized by Siemens, which currently employs 70,000 people globally in its digital industries sector.
Market outlook
CEO sees long-term potential in automation market
Despite the impending job cuts, Busch remained optimistic about the future of the automation market. He cited factors such as decreasing populations and a lack of mechanization in small and medium-sized businesses as potential growth drivers. The restructuring is viewed as a strategic move to address weaker-than-anticipated performance and position Siemens for future success in this sector.