Energy and automation technologies group ABB on Wednesday announced it would carry on with a divisional realignment and a target of cost savings of 1 billion U.S. dollars. It also lowered its annual revenue growth expectation with its market environment deteriorating.

The Zurich-headquartered group said it will operate in a streamlined set-up in four divisions: power grids, electrification products, discrete automation and motion, and process automation, rather than the previous five divisions. The company's eight-region markets will be integrated to three regions, which are Asia Middle East and Africa, Americas and Europe.

By the end of 2017, the company expects to deliver approximately 1 billion U.S. dollars in structural cost savings, aligned with its previously-announced 1,000-day programs to drive white-collar productivity and working capital management.

The plan is able to free up 2 billion U.S. dollars in cash and help ABB become more active in "value-creating acquisitions," it said in a statement.

The world's largest maker of power grids also lowered its annual revenue growth target to 3 percent and 6 percent between 2015 and 2020 from 4 percent and 7 percent previously, as the global economic conditions worsen and its markets witness significant headwinds.

ABB's CEO Ulrich Spiesshofer said: "The actions we are announcing today will deliver additional value in a more focused way to customers through our unique power and automation offering. At the same time, we will become leaner, faster and more agile."

The company confirmed it would continue its current two-year, 4 billion U.S. dollar share buyback program.