Siemens Gamesa Will Cut Nearly 3,000 Jobs
Credit to Author: Darrell Proctor| Date: Thu, 29 Sep 2022 18:52:58 +0000
Renewable energy giant Siemens Gamesa announced it will cut nearly 3,000 jobs as the company tries to turn around its financial fortunes.
The group in a statement on Sept. 29 said, “In order to realize the company’s projections for growth, Siemens Gamesa is working to strengthen specific areas within key leading markets to capitalize on its strong market position in offshore, as well as growing across the entire value chain and driving a project-centric business approach.”
The move is part of a strategy review called Mistral, a program the company announced last year in an effort to make its operations leaner as financial losses have mounted. Siemens Gamesa has struggled as problems have continued with its onshore wind operation.
The wind turbine maker posted large losses in the first quarter of the year, in part due to higher logistics and metals costs. That prompted majority owner Siemens Energy in April to revise downward its financial forecasts for 2022.
The company said about 800 jobs will be lost in Denmark, with another 475 jobs cut in Spain, 300 in Germany, and about 50 in the UK. The company said additional job losses will occur elsewhere in its global operations. The company employs 27,000 workers worldwide.
“Details for all affected countries will be defined in negotiations with the workers’ councils,” the company said.
“It is never easy to make such a decision, but now is the time to take decisive and necessary actions to turn the company around and ensure a sustainable future,” said CEO Jochen Eickholt in a statement. “We need to build a stronger and more competitive Siemens Gamesa to secure our position as a key player in the green energy transition.”
The company said it will begin negotiations with employee representatives regarding the job losses. Siemens Gamesa wants to have a new operating model and structure in place no later than Jan. 1, 2023. The company said it expects job cuts will occur over the next two-plus years, and be concluded by 2025.
Major manufacturers of wind turbines have had several financial challenges in recent years, in part due to supply chain issues created by the coronavirus pandemic. Siemens Gamesa has had particular problems with its onshore wind unit, both with the introduction of products and the execution of projects. Siemens Energy earlier launched a takeover bid in order to have full control of the business.
Siemens Energy currently owns about 67% of Siemens Gamesa. Siemens Energy in early September said it has raised €960 million ($940.3 million) to help finance its planned takeover, a deal expected to cost €4 billion ($3.9 billion). The company has not said how it will raise the remaining funds.
—Darrell Proctor is a senior associate editor for POWER (@POWERmagazine).
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