German tech conglomerate Siemens is considering cutting up to 5,000 jobs globally in its factory automation sector due to ongoing challenges, as reported by news agency Reuters. CEO Roland Busch announced the potential layoffs on Thursday, stating that re-engineering efforts become necessary when certain developments fall short of expectations.
Siemens' Q4 FY 2024 results revealed a 46% decline in profit within its flagship digital industries division, emphasizing the impact of global geopolitical and macroeconomic challenges. Despite these setbacks, the company achieved strong performance in its Profit Industrial Business segment, reporting €3.1 billion with a 15.5% profit margin.
Busch noted that the year had been marked by ongoing geopolitical and economic uncertainties, particularly with upcoming US elections and the political climate in Germany, which may continue to present challenges. Siemens anticipates only modest macroeconomic growth in the coming year, with risks such as trade conflicts, overcapacity, and waning consumer demand threatening the manufacturing sector.
However, Busch reaffirmed Siemens' commitment to long-term growth, highlighting opportunities in automation, especially in light of declining populations and the low mechanization levels among small and medium-sized enterprises.
