Siemens Gamesa will cut 2,900 employees around the world to bring back profitability
Wind turbine maker Siemens Gamesa is planning to let go of 2,900 positions, mainly in Europe, as it strives to return back to profitability.
In August, two sources said that the world’s leading maker of offshore turbines was considering slashing 2,500 positions, or nearly 9 percent of its total workforce.
The company is attempting to reverse the losses that caused its largest shareholder, Germany’s Siemens Energy, to make a takeover bid.
CEO Jochen Eickholt stated that the company’s main onshore wind turbine model will be fixed in the next three months.
However, he warned 10 to 15 associated loss-making projects would continue to be a burden until 2024.
Eickholt said in a memo to staff: “This is exactly what we need to turn our business around and return it to profitability.”
The engineering firm conducted an organizational review to find synergies across multiple functions.
It was also to adjust the manufacturing footprint and capacity to match market demands.
The company said: “Around 2,900 positions will be impacted globally, particularly in Siemens Gamesa’s major European countries.
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“Denmark (800), Germany (300), Spain (475) and the United Kingdom (50).”
It added that additional job cuts are anticipated in other countries.
Due to the firm’s challenges, parent Siemens Energy launched a bid in May for the roughly one-third stake in the turbine group that it does not already control.
The parent made the proposal with the intention of taking it private and nursing it back to health.
The deal is subject to final clearance by the market regulator in Madrid, where Siemens Gamesa was listed in 2017.