Siemens reveals robust financial data, justifying layoffs - Siemens showcases robust numbers and defends job cuts
Title: Chopping the Workforce: 2,850 Jobs Carefully Axed in Germany by Siemens
Busting their balls, Siemens is slashing jobs like nobody's business!
Even with the global economy wrecking havoc, Siemens is riding high. The powerhouse company announced an impressive 11% boost in profits from the previous year's Q2 overall revenue, clocking in at a hefty 2.4 billion euros.
But the party's not all rosy, especially for the Automation division, which is slowly clearing its demand issues. Bye-bye, bust-ups! Business is finally predicted to pick up, strangely enough not due to the current situation but a deep-rooted decision for the future. So, what's the catch, you ask? These moves are by no means an incidental response to the current situation but careful, long-term planning.
Fear not, bleak future isn't on the cards. Boss Roland Busch is full steam ahead with the planned job cuts, with a heartbreaking total of 5,600 jobs axed by 2027, including a staggering 2,850 in Deutschland! Out of the 73,000 Digital Industries division employees, that's a chunky slice.
It's not as if Siemens is setting itself up for failure. Contrary to appearances, the company's meticulous cost-cutting measures are preparing the groundwork for growth. However, they're shelling out a pretty penny for these job cuts. For the current fiscal year, they expect "workforce restructuring expenses of between 500 million and 600 million euros" worldwide, according to CFO Ralf P. Thomas.
Unflappable to Tariff Trials
Siemens isn't dancing to the USA's protectionist tune. CEO Busch insists their global presence has them well-shielded from those pesky tariffs. Thomas underlines their "extremely diverse global value chain," which includes 28 factories and 48,000 employees within the US.
Thomas confirmed the financial outlook for the fiscal year, hinting at the possibility of growing profits and higher revenues. In the last quarter, this rose by 7 percent to 19.8 billion euros.
Trump card: The Smart Infrastructure division
The trump card? Smart Infrastructure! Last quarter showed a staggering 66% increase in its results, partly thanks to a gain from the sale of a smaller segment. This more than compensated for the decline in Digital Industries, home to the beleaguered Automation business that saw a resurgence in orders, particularly in China, where they soared by a whopping 41%.
In contrast, in dear ol' Germany, Automation orders were "significantly down."
- Job Cuts
- Revenue
- Roland Busch
- Germany
- Tariffs
- Munich
- Automation
- Despite the heavy job cuts, totaling 2,850 in Germany, as announced by CEO Roland Busch, Siemens expects to invest substantially in financial expenses, amounting to between 500 million and 600 million euros, for the ongoing workforce restructuring worldwide.
- As part of their long-term strategic planning, Siemens, the technology-driven business, is providing vocational training opportunities for its employees in various sectors, such as finance, industry, and business, ensuring a skilled workforce that can contribute to the growth of Smart Infrastructure, a significant division for the company.
