Siemens new Power and Gas business aiming for 1 bn euros savings

The figure includes the 500 million euros Siemens has already saved by cutting jobs at the unit which has struggled with faltering demand and plummeting pricesREUTERS  |  May 09, 2019, 08:11 IST
FILE - This June 24, 2016 file photo shows the logo of German industrial conglomerate Siemens at the new headquarters in Munich, Germany. German industrial equipment maker Siemens said Tuesday May 7, 2019, it will cut some 10,000 jobs in a major restructuring that will involve spinning off its oil, gas and power generation business and creating new areas of growth.Photo/Matthias Schrader, file)
FILE - This June 24, 2016 file photo shows the logo of German industrial conglomerate Siemens at the new headquarters in Munich, Germany. German industrial equipment maker Siemens said Tuesday May 7, 2019, it will cut some 10,000 jobs in a major restructuring that will involve spinning off its oil, gas and power generation business and creating new areas of growth.Photo/Matthias Schrader, file)
ZURICH: The head of Siemens's Gas and Power business Lisa Davis is targeting 1 billion euros ($1.12 billion)in savings by 2023 at the business Siemens wants to spin off from the rest of its operations, according to an analyst presentation.

The figure includes the 500 million euros Siemens has already saved by cutting jobs at the unit which has struggled with faltering demand and plummeting prices.

Siemens plans to achieve the savings by cutting back office functions, "rightsizing" and having a leaner structure in the regions, although Siemens has given no figures for expected job losses. ($1 = 0.8929 euros) (Reporting by John Revill Editing by Tassilo Hummel)