Siemens Needs Cost Reduction to Achieve Ambitious Goals (Germany)

At its management conference in Berlin, Siemens AG presented the basic structure of its new company-wide program to some 600 top executives. Despite a difficult market environment, the company expects to achieve one of the best operating results in its history in fiscal 2012.

Nevertheless, Siemens will likely not meet the ambitious goals it defined for itself within the framework of the One Siemens target system. By implementing this new program, which will be in effect for two years, the company intends to focus on cutting its costs, boosting its competitiveness and becoming faster and less bureaucratic. Under the program, Siemens will concentrate on five areas:

• Cost reduction
• Go-to-market
• Simplified governance
• Optimized infrastructure
• Strengthen core activities