Siemens, the German industrial conglomerate, has announced it may cut up to 5,000 jobs globally in its factory automation division as it grapples with a significant downturn. The restructuring effort, confirmed by CEO Roland Busch, follows a sharp 46% drop in profit within the company’s flagship digital industries unit, which focuses heavily on factory automation technologies.
Busch noted that some areas of the business did not meet expected performance levels, necessitating adjustments to streamline operations. “Sometimes we have to do some re-engineering because the developments weren’t as positive as we expected them to be,” Busch explained. Siemens employs around 70,000 workers in its digital industries segment worldwide, but the impact of these cuts will primarily affect specific roles within the automation sector.
Despite the current setbacks, Busch expressed confidence in the long-term potential of the automation market, particularly as shrinking populations and the low rate of mechanization among small and medium-sized enterprises create future demand for advanced automation solutions. The company has yet to finalize exact numbers for the job cuts, though the anticipated “low- to medium-sized four-digit” reductions indicate substantial adjustments within the business.
