Munich-based technology giant Siemens is planning to break up its two major divisions, automation and infrastructure technology, and realign board responsibilities accordingly, according to an insider. The plans are part of the "One Tech Company" strategy, through which CEO Roland Busch aims to dismantle "silo structures" within the group. The Digital Industries (DI) and Smart Infrastructure (SI) divisions are to be replaced by six or seven smaller units reporting directly to the managing board, a person familiar with the matter told Reuters on Monday. The "Handelsblatt" had previously reported on the move. Siemens declined to comment.

However, the proposal must still be discussed with the supervisory board and employee representatives, which is expected to take place in May, the insider said. The exact configuration remains unclear. DI is currently led by board member Cedrik Neike, while responsibility for SI is set to be taken over in July by Chief Technology and Strategy Officer Peter Körte. The current board member in charge of SI, Matthias Rebellius, will retire at that time. As part of the restructuring, the portfolios of Körte and Neike could be redistributed. Körte spearheads Siemens' AI strategy, while Neike is regarded more as a sales specialist.

The rail technology division, Mobility, whose CEO Michael Peter does not sit on the Siemens managing board, is expected to remain unaffected by the reorganization. Considerations to merge SI and DI have been discarded, the insider added. DI currently consists of four units: Factory Automation, Motion Control, Process Automation, and Software; SI comprises Building Technologies, Energy Management, and Electrical Products. Under the "One Tech Company" banner, Busch intends to ensure that divisions are more closely integrated and that core developments are driven forward centrally to prevent duplication of work and parallel structures.

(Reporting by Alexander Hübner, edited by Philipp Krach. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)