Siemens Energy recently announced plans to make its Spanish wind turbine subsidiary, Gamesa, profitable by reducing up to 400 million euros. This could potentially lead to job cuts as part of the restructuring efforts. The company has stated that workforce adjustments will be made in order to maintain a stable number of employees in the future.
The exact impact of the workforce reductions is still being evaluated and will involve negotiations with worker representatives in the coming months. Siemens Gamesa had nearly 29,300 employees globally as of September 30 of last year, with significant numbers in countries like Denmark, Spain, and Germany. The company is focusing on areas like offshore wind energy for growth while addressing workforce changes.
Siemens Energy recently reported positive financial results for the second quarter, with net profits of 108 million euros. However, the wind business division, Gamesa, experienced losses that are expected to increase by the end of the year. The company is aiming for Gamesa to return to profitability by 2026 and achieve a double-digit operating margin in the long term.
As part of its restructuring efforts, Siemens Gamesa has undergone management changes, including the departure of CEO Jochen Eickholt and the appointment of Vinod Philip. The company aims to streamline central functions like Human Resources, Legal, and IT under a unified global management structure in order to improve efficiency and transparency within the organization.
Union representatives at Siemens Gamesa have expressed concerns about the workforce adjustments but have also noted a positive commitment from new CEO Vinod Philip towards onshore wind activities in Spain. They are seeking clarity and assurances regarding the company’s future plans as discussions continue regarding these organizational changes in the coming months.
