Siemens Layoffs: Tech Firm Likely To Fire 5,000 Employee Amid Ongoing Challenges

Siemens Layoffs: While no final decision has been made regarding the exact number of job cuts, Busch's comments suggest a clear need for strategic adjustments moving forward

Siemens Layoffs: German tech giant Siemens is considering cutting up to 5,000 jobs globally in its factory automation sector due to ongoing challenges, according to a report from Reuters. CEO Roland Busch announced the potential job reductions on Thursday.

Busch explained that restructuring is sometimes required when developments fall short of expectations, following Siemens' recent report of a 46 per cent decline in profits within its core Digital Industries division.

While no final decision has been made regarding the exact number of job cuts, Busch's comments suggest a clear need for strategic adjustments moving forward.

Siemens' Q4 FY 2024 results underscored the significant impact of global geopolitical and macroeconomic challenges on the company's performance.

Despite these headwinds, Siemens reported robust results in its Industrial Business segment, achieving 3.1 billion euros in profit with a solid margin of 15.5 per cent. 

CEO Roland Busch highlighted that the year had been marked by persistent geopolitical and macroeconomic uncertainties. With ongoing challenges such as the upcoming US elections and the political situation in Germany, Busch noted that these issues are likely to continue affecting the business environment.

Looking ahead, Siemens expects only modest macroeconomic growth in the coming year. Risks, including trade conflicts, overcapacity, and weakening consumer demand, are expected to remain significant threats to the manufacturing sector.

However, Busch stressed Siemens' commitment to long-term growth, pointing to opportunities in automation driven by declining populations and the low levels of mechanisation in small and medium-sized enterprises. With 70,000 employees in its digital industries division, Siemens plans to navigate these challenges while capitalising on strong demand in infrastructure markets, particularly in electrification and mobility.

The tech sector has been experiencing a wave of layoffs for some time now as the industry's financial challenges mount. All of the tech giants, including Amazon, Meta, Google, and many others, have recently announced several rounds of layoffs.