London CNN Business  — 

Siemens has announced plans to spin off its energy businesses while creating 10,000 new jobs in digital industries and smart infrastructure.

The German conglomerate has come under pressure in recent years as orders for its power generation and transmission products were hit by a global shift to clean and renewable technology.

Siemens (SIEGY) said in a statement on Tuesday that its gas and power business would be listed separately by September 2020. Siemens (SIEGY) will also bundle its 59% stake in renewable energy company SGRE into the new entity.

The company said it would invest heavily in areas such as electric mobility, smart buildings and energy storage, creating about 20,500 new jobs worldwide.

Job losses in other parts of the business will reduce that tally to 10,000 new positions as the company aims to cut costs by 2.2 billion euros ($2.5 billion) by 2023.

Siemens employed 379,000 workers globally at the end of 2018.

“In the growth markets of automation, industrial digitalization and smart infrastructure, Siemens wants to grow significantly and further expand its leading position,” the company said in a statement.

The European Union blocked a merger of Siemens and its French rival Alstom (ALSMY) in February that would have created the train equivalent of aviation powerhouse Airbus (EADSF).

The companies argued that joining forces was necessary to achieve the scale needed to compete with China. But regulators in Europe were worried the merger would reduce competition.

Siemens will report its latest quarterly earnings on Wednesday. Its shares are up 5% so far this year.