Siemens layoffs: German tech company to lay off 5,000 employees
German tech group Siemens has announced a reduction in its workforce. The company may lay off about 5,000 employees. This layoff will be done at a global level. These layoffs will be done in the factory automation sector. The aim of the company behind the move to reduce employees is to cope with the ongoing struggle in the market. The company’s CEO Roland Busch announced these layoffs on Thursday.
Siemens is going to reduce the number of its employees by 5,000. CEO Busch says that sometimes re-engineering also becomes necessary when development is not happening as expected. According to Reuters, Siemens has cited the report and said that the company’s profits have decreased by 46 percent. This loss has been reported in the flagship Digital Industries division. However, the exact number of total jobs that the company will reduce has not been disclosed yet. But the management has made it clear that strategy-based adjustments are bound to happen in the company and this is most needed at this time.
The company has presented the results of the fourth quarter of the financial year 2024. In these, the tech giant has highlighted the impact of global geopolitical and macroeconomic challenges. But despite these challenges, the company has reported that it has performed better in the profitable industrial business. The company has done a business of 3.1 billion euros in which it got a profit margin of 15.5%.
CEO Bush further said that this year has been a year of geopolitical and economic challenges. In view of the elections held in the US and the political situation going on in Germany, this kind of struggle may continue for the company in the future as well.
Siemens expects only modest macroeconomic growth in the coming year i.e. 2025. Trade conflicts, overcapacity and declining consumer demand are posing a threat to the manufacturing sector. The company says that it is focusing on long-term growth for which it is trying to balance its position in the market by reducing the workforce.
