Siemens Warns of Up to 5,000 Job Cuts Due to Struggling Factory Automation Business

Zurich, Switzerland - In a move to cut costs and revamp its struggling factory automation business, Siemens CEO Roland Busch announced on Thursday that the company could cut up to 5,000 jobs worldwide.

The announcement comes after Siemens reported a massive 46% decline in profit at its flagship digital industries business. The plunge has prompted the company to reassess its operations and make strategic adjustments.

"Some times we have to do some re-engineering because the developments weren't as positive as we expected them to be," Busch explained, stating that the decision was necessary to ensure the long-term survival of the business.

The affected areas are expected to be a four-digit number, which is classified as low- to medium-sized. Siemens employees worldwide, which total 70,000 globally, can expect some headcount reductions in the coming days.

However, in a statement on Thursday, Busch expressed his optimism about the long-term potential of the automation market due to declining populations and insufficient mechanization at small and medium-sized companies.

"Despite this tough moment for our factory automation division, we are working hard to reorganize the business to position ourselves better for the future," he said in a statement.