By BLOOMBERG

MUNICH • Siemens AG unveiled plans to streamline Europe’s biggest engineering company in a bid to navigate large-scale technology disruptions at many of its biggest industries.

The Munich-based company will shrink the number of operating divisions to three from five, covering power, city infrastructure and digitisation, according to a statement on Wednesday.

The plans, set to be completed by March next year, wi ll help boost revenue growth and the return on sales of Siemens’ industrial business by 2% in the medium- term, it said.

“It won’t be the biggest companies that survive, but the most adaptable,” CEO Joe Kaeser said in the statement.

The company will “give our businesses considerably more entrepreneurial responsibility than before”.

Siemens, which is due to report second-quarter earnings today, also foreshadowed investments in new fields like energy management and charging networks for electric vehicles. On Wednesday, Siemens said it’ll pay €600 million (RM2.84 billion) to buy Mendix, a coding platform for businesses developing mobile and web apps.

At the same time, the company is said to mull a sale of its flagship gas turbines business that has suffered from a collapse in orders in the global shift to renewable energy sources.

With the reorganisation, Kaeser is aiming to leave a lasting imprint on the once sprawling manufacturer and guard against a fate similar to rival General Electric Co. The flagging US giant has embarked on a far-reaching restructuring plan after coming under pressure from an activist investor and getting kicked out of the Dow Jones Industrial Average.