A MAJOR restructuring of Siemens will be undertaken during January, creating group-wide Industry, Energy and Healthcare sectors, divided into a total of into 15 divisions.
The restructuring is intended to place greater emphasis on global businesses rather than regional activities, producing a less complex organisation with clearer lines of responsibility. Heathcare will have three divisions, and the Industry and Energy sectors will have six divisions.
The Transportation Systems business will come under the Mobility division within the Industry Sector, which will be headed by Sector CEO Heinrich Hiesinger. Mobility will encompass rail and road systems, airport logistics and postal automation. By consolidating the transport, automation, industrial solutions & services, building technologies, motion control and Osram optoelectronics as divisions in one business sector, Siemens aims to gain 'major synergies in hardware and software platforms as well as for sales and marketing.'
The businesses which will make up the Industry sector currently account for around 209 000 of Siemens' 400 000 employees, and generated €40bn of the expected €72·4bn revenue in 2007.
The Siemens AG managing board is being changed to reflect the new structure, with a reduction from 11 to eight members. From January 1 the board will comprise the CEOs of the three sectors, along with President & CEO Peter Löscher, member responsible for Finance & Controlling, Joe Kaeser; Human Resources member, Siegfried Russwurm; Legal & Compliance member, Peter Y Solmssen; and Technology member, Hermann Requardt; the latter three positions will be combined with regional responsibilities.
