Siemens $SIE (-1,96 %) starts with job cuts
Siemens has announced the sad news that around 6000 jobs will be cut worldwide, including 2850 in Germany. The Digital Industries division, which is suffering from weak demand and high inventories, has been hit particularly hard. While the company emphasizes that there will be no compulsory redundancies in Germany, there is a great deal of uncertainty. The Group had already indicated in the fall that job cuts in the low to mid four-digit range were imminent. Sales in the automation business in particular have fallen sharply, even if an improvement is in sight. For Germany, however, it is to be hoped that the workforce will remain stable, as recruitment is continuing in growing areas. The works council and IG Metall have criticized the measures as contradictory and are calling for jobs to be retained in order to successfully carry out the necessary transformations.
Vonovia sees challenges due to debt package
Vonovia is facing a number of challenges in the USA and in Germany. Following losses in 2024, the company wants to get back on track and plans to increase its operating profit by around 30 percent by 2028. Despite an increase in rents and stabilized value development in the second half of 2023, Vonovia suffered a loss of 962 million euros. However, the German government's new debt package could jeopardize the ambitious plans, as rising construction interest rates could lead to a reluctance to invest in certain projects. Nevertheless, Vonovia CEO Rolf Buch remains optimistic and has set himself the target of increasing the operating result to between 2.7 and 2.8 billion euros by 2025. The German government's investment plans entail both opportunities and risks in terms of real estate prices and financing costs.
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