ABB initiates cost saving program

What this also means is that the company intends to save USD 1 billion in white-collar cost savings and also free up USD 2 billion in cash in order to become more active in value-creating acquisitions. "We are now accelerating to Stage 2 of our Next Level strategy," said CEO Ulrich Spiesshofer. "The actions we are announcing today will deliver additional value in a more focused way to customers through our unique power & automation offering. At the same time, we will become leaner, faster and more agile. This will drive the shift of our center of gravity towards higher growth, greater competitiveness and lower risk. With these actions, we address the rapidly changing market conditions and face the increased uncertainty in the world. From first light of the new year – January 1, 2016 – The company will operate in a streamlined set-up of four divisions. Meaning that the new Power Grids division will focus on the changing needs of utility customers. The new Electrification Products division will combine ABB's low- and medium-voltage businesses. The Discrete Automation and Motion and Process Automation divisions will be further aligned to ensure operational efficiency. In short, ABB's new divisional structure will be streamlined from 5 divisions to 4.