Siemens May Cut Up to 5,000 Jobs as Factory Automation Business Struggles

Hamburg, Germany - Siemens AG is considering significant job cuts in its factory automation business after reporting a stunning 46% plunge in profit at its flagship digital industries division.

In an interview on Thursday, Chief Executive Roland Busch revealed that the company might cut up to 5,000 jobs worldwide as part of a restructuring effort. This would affect some areas of the business and result in a low- to medium-sized four-digit number of job losses.

Siemens, which employs approximately 70,000 people globally in digital industries, has been struggling with declining profit margins due to unforeseen market developments. Busch attributed this decline to "re-engineering" efforts, acknowledging that the company's expectations for growth were not met.

Despite this challenging environment, Busch remains optimistic about the long-term prospects of the automation market. He cited two key factors driving growth: shrinking populations and the existing low level of mechanization in smaller companies. These trends pose an opportunity for Siemens to boost its automation offerings and capitalize on emerging technologies.