In January 2001, Kleinfeld was promoted to chief operating officer (COO) of Siemens USA. The recession in the U.S. had adversely impacted profits and Kleinfeld conceived a radical strategy to improve the performance of Siemens' operating companies. He also sought to fix, sell or close operations of recently acquired companies and create new cross-selling opportunities. Unprofitable operations were reduced from 24 to 8, and other cost-cutting measures saved an estimated $100 million. From January 2005 to June 2007, Kleinfeld served as CEO of Siemens USA. In January 2004, Kleinfeld was appointed to Siemens' corporate executive committee. Also in 2004, Kleinfeld was appointed vice president of Siemens AG.