Locally, Deutz is to merge the various operational functions at its Cologne and Ulm sites into a single unit at each location, with responsibility for quality, delivery, reliability and costs.

Internationally, Deutz’s three sales regions, service operations and back office sales management functions will be merged to form one global entity. Marketing, corporate development, quality management and product management are to be fused into a new corporate management function.

The changes will result in the number of executives reporting to the management board reduced from 25 to 17. The management board itself was reduced from four members to three in March, as part of Deutz’s MOVE action programme.

“This organisational realignment will enable us not only to reduce the number of executives who report directly to the management board but also to put in place more efficient structures based on swifter decision-making processes and a flatter hierarchy,” said Margarete Haase, who has responsibility for finance and human resources on the Deutz management board.

“This will make us quicker and more effective.”