Increasing costs, material shortages and problems with land turbines are affecting Siemens Gamesa. The CEO relies on restructuring and wants to lay off thousands of employees in Europe – jobs are also being lost in Germany.
In the course of its conversion program, the ailing wind turbine manufacturer Siemens Gamesa wants to cut thousands of jobs. According to the subsidiary of the energy technology group Siemens Energy, 2900 jobs are to be cut worldwide by the 2025 financial year at the latest.
A large part is to be lost with around 800 jobs in Denmark, 475 jobs are affected in Spain and 300 in Germany. The company will work with the employee representatives, with preference being given to natural fluctuation or internal transfers.
Gamesa is groaning under high costs, material shortages and problems with its land turbines and expects losses for the current 2021/22 financial year (ending at the end of September). The group had already had to lower its forecast several times. In order to stabilize profitability and improve it in the medium term, CEO Jochen Eickholt wants to reorganize the group.
The aim is to standardize the various structures and technologies. In the future, only one development team is planned across all platforms, the same applies to production. In addition, Gamesa had announced that it wanted to check the capacities. Eickholt hopes that this will result in simpler and leaner processes. Majority shareholder Siemens Energy has announced that it intends to take over the ailing subsidiary completely.
