Siemens Gamesa to slash 2,900 jobs

Wind turbine maker Siemens Gamesa Renewable Energy SA (BME:SGRE) will terminate some 2,900 job positions around the world in an attempt to make the organisation simplified and leaner and resurrect profitability.

The move is part of the Mistral strategy that the company launched in May amid deep losses and high costs to try to turn around its results in the medium and long term.

In an announcement on Thursday, Siemens Gamesa said that the job cuts will mainly impact its European hubs. It will slash 800 positions in Denmark, 300 in Germany, 475 in Spain and 50 in the UK. More cuts are planned in other countries around the world.

“It is never easy to make such a decision, but now is the time to take decisive and necessary actions to turn the company around and ensure a sustainable future. We need to build a stronger and more competitive Siemens Gamesa to secure our position as a key player in the green energy transition,” CEO Jochen Eickholt was quoted as saying.

The turbine maker will start negotiations with employee representatives in early October, and expects to finalise headcount adjustment no later than fiscal year 2025.

Among other moves under the Mistral strategy, Siemens Gamesa plans to bring all its manufacturing activities under the wing of the chief operating officer, and create the position of the chief technology officer to lead all product development.

“[I]n order to realize the company's projections for growth, Siemens Gamesa is working to strengthen specific areas within key leading markets to capitalize on its strong market position in offshore, as well as growing across the entire value chain and driving a project-centric business approach,” the company said.

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