Siemens Energy plans to cut 15% of the workforce for its Siemens Gamesa wind-energy business, according to an internal memo from CEO Jochem Eickholt, and cited in a Reuters report. The number of jobs in jeopardy could be as many as 4,100, though the location and timing of the cuts have not been announced. The message added that the company’s goal is to maintain a stable workforce by reassigning some employees.
"Our current situation demands adjustments that go beyond organizational changes. We have to adapt to lower business volumes, reduced activity in non-core markets, and a streamlined portfolio," according to the CEO’s message.
Eickholt is due to retire this summer, the company announced last month.
Siemens Gamesa has struggled to remain competitive in the global wind-energy market in part due to performance and maintenance problems with some of its 4.X and 5.X on-shore turbines, of which about 2,900 in total are installed worldwide. Separately, the business has faced problems ramping up production of its off-shore turbine series.
In the memo, Eickholt added: "The leadership team and I are aware that today's announcement is difficult, especially considering the challenges you've been facing over this past year."
Siemens Energy has not confirmed the report’s details. A company spokesperson said an announcement would follow discussions with stakeholders. The Reuters report followed an earlier report by a newspaper in Spain, where the business has six manufacturing plants and numerous service and sales offices.
Siemens Gamesa has a blade manufacturing plant in Fort Madison, Iowa, and a nacelle assembly plant in Hutchinson, Kan., among 15 operations for turbines and blades worldwide. It also operates a wind-energy research center in Boulder, Col., and it has service centers in Boulder and Orlando, Fla.
Siemens Inc. merged its Siemens Wind Power business into a joint venture with the Spanish wind-power manufacturer Gamesa in 2017, and that holding was spun off with the larger Siemens Energy business in 2020. In December 2022, Siemens Energy acquired all outstanding shares of the Siemens Gamesa combination.
