Siemens Energy is speeding up decisions and cutting almost every third managerial position. The leaner structures are intended to speed up the processes, as the company announced on Tuesday. The aim of the measures is, among other things, to dispense with complex coordination processes and to strengthen the sense of responsibility of individual units. “Technology is important, but is no longer sufficient on its own,” said Siemens Energy boss Christian Bruch. “The decisive factor will be how we control our supply chains and production, how we process projects and how we successfully use our growing database.”
In some areas there were up to eleven hierarchical levels, now there should be a maximum of six in the future. The reorganization will not result in job cuts. The segment with gas and electricity systems is also divided into three business areas. In the future, the largest of these will be the business with gas turbines and their maintenance, which has annual sales of around nine billion euros. The adjusted operating return (EBITA margin) is to be increased to ten to twelve percent in the medium term, after seven percent last year. The group announced that the reorganization should give the capital market the opportunity to better assess the development of the business.
The takeover bid for the third of the ailing Spanish wind power subsidiary Siemens Gamesa, which Siemens Energy does not yet own, could be launched before September, Bruch also said. In the end, however, the schedule depends on the Spanish supervisory authorities.