Siemens could lay off 5,000 of its staff globally in its factory automation business which is facing challenges, Cheif Executive Roland Busch stated on Thursday.
"Sometimes we have to do some re-engineering because the developments weren't as positive as we expected them to be," said Busch following Siemens' announcement of a 46 per cent decline in profit at its flagship company in the digital industries.
"This means we are going to have a low- to medium-sized four-digit amount which will affect some areas," Busch stated.
Siemens has a workforce of 70,000 employees in digital industries worldwide.
Busch also said that he sees long-term potential in the automation sector due to declining demographics and low levels of mechanization in small and medium-sized businesses.