With economic downturn, Siemens Gamesa might cut 2,500 jobs

Robert Besser
05 Aug 2022, 04:35 GMT+10

Wind turbine-maker Siemens Gamesa is considering cutting some 2,500 jobs, or about 9 percent of its total workforce
The move, which is aimed at recovering from losses, led its main shareholder to launch a takeover bid
Based on figures from the company's website, the cuts would reduce a workforce of some 27,000 people, but it is not immediately clear which divisions or regions would be affected

HAMBURG, Germany: Wind turbine-maker Siemens Gamesa is considering cutting some 2,500 jobs, or about 9 percent of its total workforce.

The move, which is aimed at recovering from losses, led its main shareholder to launch a takeover bid.

Based on figures from the company's website, the cuts would reduce a workforce of some 27,000 people, but it is not immediately clear which divisions or regions would be affected, and no final decision has been made, the sources said.

CEO Jochen Eickholt, who joined Siemens Gamesa from parent Siemens Energy in March following three profitable warnings, aims to overhaul the turbine maker's fortunes, and the move could be seen as part of his efforts.

When asked in June whether layoffs and plant closures were planned, Eickholt said he could not rule out anything.

Governments have aimed to wean themselves off fossil fuels, relying on masts and blades for the wind turbines produced by the company, but Russia's invasion of Ukraine and disruptions caused by COVID-19 have negatively affected production.

Partly due to delays in developing and delivering a new range of onshore turbines, Siemens Gamesa has struggled, in particular, prompting majority shareholder Siemens Energy to launch a $4.2 billion bid to purchase the one-third stake it does not already own.

This year, the company's market value fell by 14.6 percent, compared with a 7.7 percent drop for market leader Vestas.