Siemens Energy’s Gamesa is going to lay off 4,100 of its team members in the wind turbine unit as part of a restructuring exercise. That means about 15 per cent of the company’s workforce will be affected. The employees were informed of the cuts via a letter by Jochen Eickholt, CEO, Siemens Gamesa Renewable Energy.
The company incurred losses to the tune of $4.9 billion last year due to a slump in sale of wind turbine models. This year, it posted a loss of $395 million in Q2.
It had already been announced that Eickholt would be leaving by end of July 2024 and that Vinod Philip. Existing board member, would be stepping into his shoes.
These changes, as per media reports, are required to streamline the business and make the firm more stable. Jobs are likely to be cut in Denmark, Germany and Spain. Negotiations are on with the employees.
Earlier this month, the company had shared that the sale of its 4.X and 5.X onshore wind turbine platforms, which had been stalled due to certain defects, will resume.
Siemens Energy was spun off from Siemens in 2020, with the former still owning 25 per cent of Siemens Gamesa, which commenced operations seven years ago.
The company is planning to make changes, including reallocation of certain responsibilities and hiring of more talent for other units or functions.
