Power Generation / Power Quality / Power Transmission

Siemens cuts 10,000 jobs, plans to spin off energy unit in massive overhaul

By Oliver Sachgau, for Bloomberg

May 08, 2019

Siemens AG outlined a plan to separate its struggling power and gas division and said it would cut 10,000 jobs, a watershed moment in Chief Executive Officer Joe Kaeser’s drive to dismantle the company’s cumbersome conglomerate structure.

The shares surged the most in a year after the German corporate icon said earnings from its main industrial business rose 7 percent to 2.41 billion euros ($2.7 billion), excluding some items. That beat an average analyst estimate of 2.23 billion euros compiled by Bloomberg.

The plan announced Tuesday evening, a cornerstone of Kaeser’s strategic push to position Siemens for the future, would be the company’s biggest spinoff in its history. Siemens rose as much as 4.7 percent, and was up 3.9 percent at 106.44 euros at 9:18 a.m. in Frankfurt.

Read the full story, "Siemens Carves Out Energy Unit and Cuts 10,000 Jobs in Massive Overhaul," on www.bloomberg.com.

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