German industrial equipment and technology supplier Siemens AG says net profit fell 5% in the first three months of the year as the company heads into a major restructuring involving the spinoff of its oil, gas and power generation business.

File photo: VCG

Net profit was 1.92 billion euros ($2.15 billion), down from 2.02 billion a year earlier, when earnings were boosted by 900 million euros by a share transfer. Revenue rose 4% to 20.93 billion euros.

Siemens said Thursday that it would spin off its division that makes power turbines to increase the division's entrepreneurial freedom, while cutting costs at its remaining businesses. The company said it would drop 10,400 jobs but expected to create 20,500 more through growth through 2023, leading to a net increase of 10,000.