Siemens Gamesa to cut thousands of jobs amid 'lower business volumes', CEO tells staff

Outgoing CEO Jochen Eickholt in internal letter announces layoffs of some 15% of global workforce as sales stop of 4.X and 5.X onshore wind platform continues

Outoing Siemens Gamesa CEO Jochen Eickholt.
Outoing Siemens Gamesa CEO Jochen Eickholt.Photo: WindEurope
Siemens Gamesa plans to cut 4,100 jobs – about 15% of its global workforce – the CEO of the embattled wind turbine manufacturer told his staff in an internal letter seen by the Reuters news agency.

"Our current situation demands adjustments that go beyond organisational changes,” Jochen Eickholt is quoted as writing.

“We have to adapt to lower business volumes, reduced activity in non-core markets, and a streamlined portfolio.”

The job cuts come as the company has paused selling turbines from its problem-ridden 4.X and 5.X onshore wind platforms (that cover the 5 to 7MW range) while a task force that also includes parent Siemens Energy is carrying out a thorough process of finding the root causes of the technological issues and fixing them.

How the sales stop is affecting business was shown yesterday, when rival GE Vernova said it had received an order worth $761m from Copenhagen Infrastructure Partners (CIP) for a project in Spain, which has traditionally been a strong market for Siemens Gamesa due to its Gamesa legacy.
Siemens Energy CEO Christian Bruch at a recent call on financial results had stressed that Siemens Gamesa’s overall job count would more or less remain the same despite upcoming job cuts as staff is added in other areas, such as offshore wind. He said, however, that it won’t always be practical to transfer employees to other locations.

“It will not be possible simply to take someone from Taiwan and transfer them to Cuxhaven. That’s not going to be possible,” Bruch said.

Siemens Gamesa didn't confirm the exact number of jobs to be cut.

"The nature of negotiations is that the result is only clear at the end, not at the beginning. Once we have discussed the details with all parties involved and know how many of the jobs affected can be absorbed by growth in other areas, we will announce a result," the company said in a statement.

Siemens Gamesa employees are particularly worried in Spain, where the company has several onshore wind plants.

But the job reduction in Spain will not affect the manufacturing sites and will mostly affect white-collar positions," sources to the company told Recharge.

“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 said in his letter to staff.

"But I want to underscore that our wind business, including Onshore, has a future."

The CEO will step down at the end of July, and be followed up by Vinod Philip, who currently serves as Siemens Energy’s head of global functions including IT, purchasing, innovation, logistics and project management.
UPDATES with company sources saying job cuts in Spain will mostly affect white-collar positions
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Published 29 May 2024, 09:37Updated 29 May 2024, 11:11
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