Siemens Gamesa Cutting 4,100 Jobs in Wind Turbine Unit

Siemens Gamesa plans to cut about 4,100 jobs from its wind turbine division as the company continues to restructure its business. The downsizing, reported May 28 by Reuters, impacts about 15% of the company's workforce. The news service said the layoffs were noted in an internal letter to staff from CEO Jochen Eickholt. The cuts were expected after the company reported a €4.6 billion ($4.9 billion) loss in 2023, triggered by the suspension of sales for two wind turbine models. The group reported a €365 million ($395 million) loss for the second quarter of this year. The company earlier announced Eickholt—who has served as CEO since March 2022—would leave at the end of July and be replaced by current board member Vinod Philip. "Our current situation demands adjustments that go beyond organizational changes. We have to adapt to lower business volumes, reduced activity in non-core markets, and a streamlined portfolio," Eickholt said in the letter, according to Reuters. Reports said jobs in Spain, Germany, and Denmark could be cut, and a spokesperson for Siemens Energy said the company would make an official announcement after all the affected workers were notified. A spokesperson said negotiations are underway with workers.

Continued Restructuring

Siemens Energy continues to restructure the Siemens Gamesa renewable energy unit. Siemens Energy earlier this month raised its full-year financial projections after saying the company had a fourfold increase in quarterly operating profit. Siemens Energy spun off from Siemens in 2020. Siemens Energy still owns about 25% of Siemens Gamesa, which has operated since 2017. Eickholt reportedly said the goal of the staff reduction was to provide stability for Siemens Gamesa's total workforce. Eickholt confirmed comments made by Christian Bruch, CEO of Siemens Energy, earlier in May. Bruch had said the company would shift some job responsibilities and hire additional workers in other areas. "The leadership team and I are aware that today's announcement is difficult, especially considering the challenges you've been facing over this past year," Eickholt wrote in the letter. "But I want to underscore that our wind business, including onshore, has a future." The company in early May said it would resume sales of the 4.X and 5.X onshore wind turbine platforms, which were halted after the discovery of engineering defects. —Darrell Proctor is a senior associate editor for POWER (@POWERmagazine).