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Siemens Restructures Divisions for Greater Agility, Profitability

Aug. 3, 2018
Siemens’ divisions will be Gas and Power; Smart Infrastructure; and Digital Industries.

Siemens AG, Munich, Germany, announced a restructuring of its business into three divisions from five in a move to improve profitability and give its individual businesses more “entrepreneurial freedom,” said a Siemens release.

When Siemens CEO Joe Kaeser’s new “Vision 2020+” initiative takes effect in October at the start of its next fiscal year, Siemens’ divisions will be Gas and Power; Smart Infrastructure; and Digital Industries. The company will also keep three “strategic companies” separate: Siemens Healthineers, Siemens Gamesa and, once an acquisition in the works is completed, Siemens Alsthom.

Plans also call for strengthening the company’s growth portfolio through investments in fields such as IoT integration services, distributed energy management and infrastructure solutions for electric mobility, Siemens said.

In a report of its 3Q financial performance, Siemens revenue was flat with increases in the majority of industrial businesses offset by significant declines in Power and Gas and Siemens Gamesa.

The company recently acquired Mendix, a maker of low-code application development platforms that Siemens said will enable its customers to deploy new apps faster.