BERLIN (dpa-AFX) - Siemens AG (SIEGY.PK, SMAWF.PK) said it would spin off its Gas and Power business, cut about 10,400 jobs and create about 20,500 new jobs by 2023.
The German engineering giant said its supervisory board approved the next steps in the company's Vision 2020+ strategy concept, including the spinoff of the company's Gas and Power business.
The company said it will create new major player on the energy market with business volume of 30 billion euros and over 80,000 employees through spinoff of Gas and Power, and transfer of the company's stake in renewable energies company SGRE stake.
The new business, which includes the company's oil and gas, conventional power generation, power transmission and related services businesses, is to be carved out and a subsequent public listing is planned to take place by September 2020, Siemens said.
In addition, Siemens plans to contribute its majority stake in the renewable energies company SGRE - currently 59 percent - to Gas and Power.
The newly planned efficiency improvements will cut costs by a total of some 2.2 billion euros by 2023. This figure includes the 500 million euros targeted by the Gas and Power cost reduction program that was announced in September 2018.
Siemens expects to create about 20,500 new jobs by 2023. Taking into account the roughly 10,400 efficiency-related workforce adjustments, there will be a net increase of about 10,000 jobs worldwide within the same time period.
Siemens's Smart Infrastructure unit wants to hire up to 6,000 new employees by 2023, in services, research and development, and sales. It is expected to generate annual revenue growth of four to five percent across Smart Infrastructure's entire portfolio.
Smart Infrastructure unit will reduce costs over the next three years by bundling capacities and through partnerships. The unit plans to reduce jobs by a total of 3,000 worldwide. This measure will generate 300 million euros in restructuring charges. All in all, the unit expects a net increase of about 3,000 jobs by 2023.
Siemens said its Digital Industries unit's goal is to grow 25 percent faster than the market. As a result, up to 12,000 new employees are to be hired worldwide, primarily in production, research and development, and sales.
According to the company, Digital Industries unit will optimize its profitability through the integration of two former Divisions, the improvement of internal processes in areas such as logistics, simplified controlling and the increased use of the company's own industrial software portfolio. Up to 4,900 jobs worldwide will be affected by the measures. The unit expects to incur restructuring charges of 300 million euros by 2023. All in all, the unit expects additional growth to generate about 7,000 jobs by 2023.
As previously announced, key parts of Siemens' Corporate Units and administration have been decentralized. The remaining Corporate Functions are also to become significantly leaner. Concentration on the key tasks of the company's Corporate management means that about 2,500 of the total of around 12,500 jobs at these Corporate Functions will be cut by 2023. This reduction is expected to result in restructuring charges of 400 million euros.
Copyright RTT News/dpa-AFX
© 2019 AFX News
