Siemens to cut number of units and about 7,000 jobs
Siemens unveiled plans to streamline operations at Europe’s biggest engineering company in a bid to boost profitability and navigate large-scale technology disruptions at many of its biggest industries. The Munich-based company will shrink the number of operating divisions to three from five, covering power, city infrastructure and digitisation, according to a statement. The plans, set to be completed by March 2019, will help boost revenue growth and the return on sales of Siemens’ industrial business by two percentage points in the medium-term, it said. The overhaul was outlined at the same time as third-quarter earnings, which showed so-called industrial business profit rose 2% to €2.21bn, missing the €2.27bn average estimate of analysts surveyed by Bloomberg. Siemens retained its full-year outlook. The earnings from the latest period showed a deep slump at the division making gas turbines and strong growth in digital operations, pointing to the need of a revamp into new technolog...
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