Cost Cutting Measures and Leadership Changes: Siemens Energy’s Plan to Make Gamesa Profitable

Siemens Energy has announced plans to reduce costs by up to 400 million euros in order to make its Spanish wind turbine subsidiary, Gamesa, profitable. This could potentially lead to job cuts as part of efforts to simplify and optimize the company’s structure. The company stated that workforce adjustments will be necessary, but they hope to keep the total number of employees relatively constant in the coming years, with certain areas like offshore wind energy continuing to grow.

As of September 30, Siemens Gamesa employed almost 29,300 workers worldwide, with significant numbers in countries like Denmark, Spain, and Germany. While it is unclear how the measure will specifically impact Spain, Siemens Energy’s main work centers in the country are in Zamudio, Sarriguren, and Ágreda. The company plans to negotiate concrete measures with worker representatives in the coming months to determine the exact impact of the workforce reduction.

In addition to cost-cutting measures, Siemens Energy has also announced changes in leadership. CEO Jochen Eickholt has departed and been replaced by Vinod Philip. There will be a restructuring of central functions within Siemens Gamesa, with a focus on agility, effectiveness, and transparency. The company aims for its wind turbine subsidiary to return to profitability by 2026 with a double-digit operating margin in the long term.

Union representatives at Siemens Gamesa have expressed concern about the workforce adjustments but have noted the company’s commitment to onshore wind activities. Both CC OO and UGT have shown their discomfort with the announcements and have emphasized the importance of a clear commitment from the new CEO for the development of business in Spain. Siemens Energy’s recent financial results showed positive net profits, with growth in industrial transformation divisions offsetting losses in the wind business.