Siemens Gamesa To Cut 4,100 Jobs In Wind Turbine Unit

Siemens Gamesa is set to eliminate approximately 4,100 positions within its wind turbine division as part of an ongoing business restructuring effort. According to a report by Reuters on 28 May, this reduction represents about 15 per cent of the company's workforce and was disclosed in an internal communication from CEO Jochen Eickholt.

The job cuts come in the wake of a significant financial downturn, with the company reporting a €4.6 billion ($4.9 billion) loss in 2023 due to the suspension of sales for two wind turbine models. The second quarter of this year saw an additional loss of €365 million ($395 million).

Eickholt, who has been CEO since March 2022, is slated to depart at the end of July, with current board member Vinod Philip set to take over. In his letter to staff, Eickholt emphasised the need for adjustments beyond organisational changes, citing the necessity to adapt to lower business volumes, decreased activity in non-core markets, and a more streamlined portfolio. Potential job cuts are expected in Spain, Germany, and Denmark, with Siemens Energy planning an official announcement following notifications to all affected employees. Negotiations with workers are currently in progress.

Siemens Energy is continuing its restructuring of the Siemens Gamesa renewable energy unit. Earlier this month, Siemens Energy raised its full-year financial projections after reporting a fourfold increase in quarterly operating profit. Siemens Energy, which spun off from Siemens in 2020, still holds about a 25 per cent stake in Siemens Gamesa, which has been operational since 2017.

Eickholt stated that the objective of the workforce reduction is to stabilise Siemens Gamesa’s overall employee base. This aligns with earlier remarks by Siemens Energy CEO Christian Bruch, who mentioned in May that the company would reassign some job responsibilities and hire additional workers in other areas to maintain stability and efficiency.