German technology giant Siemens could reduce its workforce in the worldwide automation sector by up to 5,000 jobs worldwide. 

An exact figure for the reductions has not been finalised, Reuters reports. 

The company’s CEO Roland Busch was quoted by the news agency as saying: “Sometimes we have to do some re-engineering because the developments weren’t as positive as we expected them to be. 

“This means we are going to have a low- to medium-sized four-digit amount which will affect some areas.’ 

Siemens boasts a global workforce of 70,000 in its digital industries division. 

Busch remains optimistic about the future prospects of the automation market.  

He cited the declining populations and the current low level of mechanisation within small and medium-sized enterprises as factors that could drive long-term potential growth in the sector. 

This potential move comes after the firm reported a drop of 46% in profit at its digital industries business for the fourth quarter (Q4) ending 30 September 2024. 

For this period, the company’s revenue increased by 2% to $20.81bn (€19.8bn) on comparable basis, excluding currency translation and portfolio impacts. Its net profit for the quarter grew by 11% to $2.11bn. 

Siemens noted that growth in revenue for Smart Infrastructure, Mobility and Siemens Healthineers was majorly offset by a drop in the automation business at Digital Industries. 

Earlier in November 2024, Reuters reported that Siemens indicated its capacity for further investments in the software sector following its recent announcement of $10.6bn acquisition of US industrial software company Altair. 

The deal completion is subject to customary conditions and is anticipated to occur in H2 of 2025 calendar year. This transaction is said to be the second largest takeover in the company’s history.