Siemens plans to accelerate its growth and enhance profitability through a new “One Tech Company” strategy. CEO Roland Busch stated to the “Handelsblatt” that the company’s goal remains to achieve double-digit percentage growth. Although the current global economy poses challenges, Busch is confident that the conglomerate has the potential to sustain double-digit growth not just in individual years, but across an entire business cycle.
On Tuesday, the DAX-listed company presented to employee representatives within the economic committee the initial plans for reorganizations stemming from this new strategy, which involves deep structural changes throughout the corporation. Busch emphasized areas needing improvement, noting, “We have great potential for improvement in sales. We need to make it significantly more efficient”. Changes are also planned for technological development. The company intends to rely less on intermediaries, bring more employees into direct customer contact, and utilize digital tools more efficiently.
Previously, when the new course of action was presented last November, capital markets reacted with some disappointment. Busch acknowledged that Siemens may have been overly cautious (“overly prudent”). He clarified that while they raised growth expectations, they did not correspondingly raise profit targets. However, these strategic adjustments are designed to contribute to profitable growth.