The company says it has to adjust its production capacity in line with market conditions
[ZURICH] Siemens will cut 5,600 jobs from its flagship digital industries business, the German engineering company announced on Tuesday (Mar 18), saying it was adjusting its production capacity in line with weak demand.
Siemens said “muted demand primarily in the key markets of China and Germany coupled with increased competitive pressures have considerably reduced orders and revenue in the industrial automation business” over the last two years.
Global demand for automation technology is intact over the long term, Siemens said, but the company had to adjust its production capacity in line with market conditions.
The job cuts were first flagged by Siemens last November, while in its latest quarter Siemens reported big drops in sales and profits at the division, as Germany, China and Italy all struggled.
Digital Industries employs about 68,000 people worldwide, with 2,600 of the axed jobs coming in Germany.
Siemens also said it would cut around 450 jobs at its electric vehicle charging business. REUTERS
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