UPDATE 2-Siemens plans more cuts at Power & Gas business - source

* Overhaul may results in thousands of job cuts - source

* Siemens still mulling various scenarios - source

* To close or sell up to 11 out of 23 sites - Manager Magazin

* Siemens says continuously reviewing strategy (Adds new source, analyst's comment, further details)

FRANKFURT, Oct 19 (Reuters) - Siemens is planning further cost cuts at its Power & Gas division that will likely result in thousands of job cuts, a person familiar with the matter told Reuters on Thursday.

"Various scenarios are being considered," the person said, adding details of the overhaul were still to be determined.

The Power and Gas business is struggling with lower worldwide demand for the large electricity generating turbines that Siemens specialises in.

The company reported a 41 percent drop in orders and a worse than expected 23 percent fall in profits in its fiscal third quarter that ended in June.

"In light of the dramatic changes seen across the global fossil power market, new cost-cutting measures are required in our view," Barclays analysts said in a note.

German monthly Manager Magazin earlier cited company sources as saying that Siemens could shut or sell up to 11 of its 23 Power & Gas sites around the world, which could include plants in the eastern German cities of Erfurt and Goerlitz.

The analysts at Barclays said they also expected Siemens to restructure its U.S. plant in Charlotte, North Carolina.

Siemens said it was continually thinking about its strategic direction, which could include consolidation of some businesses, but declined to say whether it was planning restructuring measures at the Power & Gas business.

According to Manager Magazin management will present the restructuring plan for Power & Gas to labour representatives in early November.

Excluding its services business, the division has 30,000 employees worldwide, of which 12,000 are based in Germany.

Siemens is due to publish fourth-quarter financial results on Nov. 9. Its rival General Electric announces its results on Friday. (Writing by Maria Sheahan; Editing by Greg Mahlich and Douglas Busvine)