Milwaukee, May 17: US-based industrial automation and digital transformation solution provider Rockwell Automation shared its plans to lay off hundreds of employees. The company aimed to prioritize its spending on the "highest-value activities by implementing the Rockwell Automation layoffs. A report said that the leaders of the automation equipment and software company reacted to the machine-builder customers working down in inventories. 

According to a report by SmartIndustry, Rockwell Automation CEO Blake Moret announced the company's plan to trim 3% payroll in order to save $100 million in the second fiscal year ending on September 30, 2024. The company reportedly aimed to save more than $120 million in FY2025. The report said that the layoffs will impact 3%, about 900 employees. Rockwell Automation had around 29,000 employees globally last fall; out of them, 10,000 worked in North America. Toshiba Layoffs: Japan’s Electronics Company To Let Go 4,000 People Domestically as Part of Restructuring.

Rockwell Automation layoffs will impact the employees working in sales, marketing and headquarters, said CEO Blake D. Moret. He further added that the layoffs might also affect the employees in other geographical locations and different parts of the company's product portfolio. The layoffs at Rockwell Automation had been implemented not because of the slower growth compared to the past but to meet the cost-cutting plan of $100 million as a second-half target, said the Rockwell Automation CEO and other company executives.

According to the CEO, Black Moret and CFO Nick Gangestad pointed out the issue of sticky inventories with Rockwell Automation customer groups in January. The team was unclear about how many inventories had been built up at the time of the COVID-19 pandemic and after. Moret updated in March that the inventory situation was related to timing rather than underlying demand. Rockwell Automation's CEO further said that orders were expected to return year-on-year growth in the third quarter and were likely to increase. However, the slower ramp impacted the shipment for the second half. Tesla Layoffs: Elon Musk’s EV Company To Lay Off 601 Employees Across Multiple Locations in California Starting From June 20, Says Report.

According to a report by Milwaukee Business Journal, The Rockwell Automation layoffs would lead to a 3% workforce reduction due to the company reporting weaker-than-expected sales to EV and semiconductor plants. The layoffs will affect the company's Milwaukee corporate headquarters along with other locations. The company CEO reportedly said that electric vehicles comprised about one-third or more of the total automation business, but the company still received business from projects. However, Rockwell Automation sales were down 25% in the semiconductor category. Nicholas C Gangestad, Rockwell Automation CFO, also reportedly notified the company about his resignation this month.

(The above story first appeared on LatestLY on May 17, 2024 01:01 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).