Siemens plans bold restructuring to dismantle two major divisions
Siemens is considering a major internal shake-up that could dismantle two of its largest divisions. The proposed changes would split Digital Industries and Smart Infrastructure into smaller The restructuring plan, first hinted at by CEO Roland Busch a year and a half ago, would break down the existing divisions into six or seven independent business units. These would report directly to Siemens' executive board, removing layers of management. The shift follows the earlier spin-off of Siemens Healthineers, which set a precedent for this type of reorganisation.
Under the **'One Tech Company'** strategy, the goal is to eliminate redundant functions and parallel developments. The current divisions—**Digital Industries**, covering factory automation, drive technology, and process automation, and **Smart Infrastructure**, handling building technology and energy management—would no longer operate as standalone entities. Instead, their units would work more closely together, sharing resources and expertise. Matthias Rebellius and Cedrik Neike, who currently lead **Smart Infrastructure** and **Digital Industries** respectively, would see their roles change under the new structure. While no immediate job cuts are planned, adjustments in sales, procurement, and development processes are expected. Siemens has not confirmed how many employees might be affected in the medium to long term, nor has it specified which departments or locations could be impacted. The company declined to comment on a **Handelsblatt** report about the restructuring, stating that no final decision has been made. Further details are expected to be discussed in May.
If approved, the restructuring would mark a significant shift in how Siemens operates. The new structure aims to improve collaboration across business units while reducing inefficiencies. Final decisions on the changes are still pending, with more clarity expected in the coming months.
