The global CEO of Siemens has been let go after the company experienced poor results.
Chief Executive Peter Loescher's time was up when Siemens said it won't reach its target of an overall profit margin of at least 12% in the fiscal year ending September 30, 2014.
In a rather cryptic statement Siemens noted : "At its meeting on July 31, 2013, the Supervisory Board of Siemens AG will decide on the early departure of the President and CEO. In addition, it will decide on the appointment of a member of the managing board as President and CEO. The agenda of the meeting of the Supervisory Board has been extended accordingly."
Siemens chief executive, Peter Loescher has been blamed for a series of poor investment choices including failing to meet profit targets. Siemens said it won't reach its target of an overall profit margin of at least 12% in the fiscal year ending September 30, 2014.
The 55-year old Austrian national was however, keen to stay on. Even after the poor financial results last week, Loescher was quoted in Saturday's Sueddeutsche Zeitung as saying: "I have a contract until 2017 and Siemens more than ever needs a captain."
Loescher joined Siemens from Merck & Co and is the first person recruited from outside the company.
Loescher is being blamed for the late delivery of high-speed trains for Germany's national railroad as well as delays in completing offshore wind turbine projects.
Loescher had tried to focus the company on its most profitable businesses and make it easier to manage. For instance, he spun off its Osram lighting unit, and also sold its portion of the Nokia joint venture that supplies equipment for mobile telecommunication networks.
After Siemens reported a seven per cent decline in sales for the first three months of 2013 Loescher's fate was sealed.