By Giulia Petroni
Siemens Energy AG announced on Tuesday that it will implement a new organizational structure in a bid to improve efficiency and provide greater transparency to the capital market.
The German energy company said ahead of its capital markets day that from next year its divisions will be repositioned as business areas and their financial figures will be released quarterly. The gas and power segment will be reorganized into gas services, network technologies and industry transformation.
Siemens Energy also said it would implement a lean hierarchical structure and eliminate a total of around 30% of previous management positions to speed up decision-making processes. No layoffs are expected due to the new structure.
The planned integration of Siemens Gamesa Renewable Energy SA also aims to strengthen Siemens Energy’s position as an integrated energy technology company, while allowing the struggling wind turbine maker to meet its challenges after several profit warnings.
The transaction is expected to close in the second half of the year, with estimated cost synergies of up to 300 million euros ($320.7 million) per year within three years of full integration, the company said. .
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