Siemens plans reorganisation of two divisions, says source

Siemens is set to dissolve its digital industries and ​smart infrastructure segments in an upcoming reorganisation, ‌a person familiar with the matter ​told Reuters on Monday.

The ⁠reorganisation seeks to break down “silo structures” in a move aligned with CEO Roland ‌Busch’s “One Tech Company” strategy, which aims to combine the likes ‌of infrastructure and transportation with ‌software ⁠and AI.

Digital industries currently ⁠focuses primarily on factory automation, motion control and process automation, while smart infrastructure’s key business ​areas include building ‌technology and energy management.

The two divisions would be split into six or seven smaller units in total, ‌with a reorganisation of the ​executive board to follow, the source said. Each unit would ⁠report directly to the board.

How exactly this would look is still unclear, ‌and the plan needs to be discussed by the supervisory board and employee representatives, likely in May.

Previous plans to merge the digital industries and smart infrastructure divisions have ‌thereby been put on hold again, the ​source added.

The German engineering group’s mobility division, which focuses on ⁠rail technology, is meanwhile expected to ⁠remain unaffected by the restructuring.

German newspaper Handelsblatt first reported on ‌the plans.

Siemens declined to comment.