Siemens Chief Executive Joe Kaeser will reveal plans in August to reduce the number of industrial divisions at the engineering group to boost efficiency, Reuters and Germany’s Manager Magazin reported today.
The long-awaited strategy known as Vision2020+ plans to merge five industrial divisions into three and to impose higher margin targets on the new units, spurred by a goal to loosen central control to enable operations to thrive.
According to the report, Kaeser intends to present his plan at the beginning of August with the conversion to be implemented as soon as the beginning of the new fiscal year, October 1.
Manager Magazin states that reorganization includes uniting the digital factory sector with the automation of process industries, and the combination of high-voltage networks with the fossil power plant business. Further stated reorganization involves breaking up the energy management unit, and joining the power distribution networks with building technologies.
A Siemens spokesman stated: “We are currently working with peace and diligence on the further development of the corporate strategy.” He added, “Where changes are needed, we will act, always focusing on customer proximity, competitiveness and innovation.”
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