Siemens Gamesa plans to chop about 4,100 jobs from its wind turbine division as the corporate continues to restructure its enterprise.
The downsizing, reported Might 28 by Reuters, impacts about 15% of the corporate’s workforce. The information service mentioned the layoffs had been famous in an inside letter to employees from CEO Jochen Eickholt.
The cuts had been anticipated after the corporate reported a €4.6 billion ($4.9 billion) loss in 2023, triggered by the suspension of gross sales for 2 wind turbine fashions. The group reported a €365 million ($395 million) loss for the second quarter of this 12 months.
The corporate earlier introduced Eickholt—who has served as CEO since March 2022—would go away on the finish of July and get replaced by present board member Vinod Philip.
“Our present scenario calls for changes that transcend organizational adjustments. We have now to adapt to decrease enterprise volumes, lowered exercise in non-core markets, and a streamlined portfolio,” Eickholt mentioned within the letter, in keeping with Reuters. Reviews mentioned jobs in Spain, Germany, and Denmark might be minimize, and a spokesperson for Siemens Vitality mentioned the corporate would make an official announcement after all of the affected employees had been notified. A spokesperson mentioned negotiations are underway with employees.
Continued Restructuring
Siemens Vitality continues to restructure the Siemens Gamesa renewable power unit. Siemens Vitality earlier this month raised its full-year monetary projections after saying the corporate had a fourfold enhance in quarterly working revenue. Siemens Vitality spun off from Siemens in 2020. Siemens Vitality nonetheless owns about 25% of Siemens Gamesa, which has operated since 2017.
Eickholt reportedly mentioned the purpose of the employees discount was to supply stability for Siemens Gamesa’s whole workforce. Eickholt confirmed feedback made by Christian Bruch, CEO of Siemens Vitality, earlier in Might. Bruch had mentioned the corporate would shift some job obligations and rent extra employees in different areas.
“The management group and I are conscious that at the moment’s announcement is troublesome, particularly contemplating the challenges you’ve been going through over this previous 12 months,” Eickholt wrote within the letter. “However I need to underscore that our wind enterprise, together with onshore, has a future.”
The corporate in early Might mentioned it might resume gross sales of the 4.X and 5.X onshore wind turbine platforms, which had been halted after the invention of engineering defects.
—Darrell Proctor is a senior affiliate editor for POWER (@POWERmagazine).
