With economic downturn, Siemens Gamesa might cut 2,500 jobs

Robert Besser
05 Aug 2022, 04:35 GMT+10

Wind turbine-maker Siemens Gamesa is considering cutting some 2,500 jobs, or about 9 percent of its total workforce
The move, which is aimed at recovering from losses, led its main shareholder to launch a takeover bid
Based on figures from the company's website, the cuts would reduce a workforce of some 27,000 people, but it is not immediately clear which divisions or regions would be affected

HAMBURG, Germany: Wind turbine-maker Siemens Gamesa is considering cutting some 2,500 jobs, or about 9 percent of its total workforce.

The move, which is aimed at recovering from losses, led its main shareholder to launch a takeover bid.

Based on figures from the company's website, the cuts would reduce a workforce of some 27,000 people, but it is not immediately clear which divisions or regions would be affected, and no final decision has been made, the sources said.

CEO Jochen Eickholt, who joined Siemens Gamesa from parent Siemens Energy in March following three profitable warnings, aims to overhaul the turbine maker's fortunes, and the move could be seen as part of his efforts.

When asked in June whether layoffs and plant closures were planned, Eickholt said he could not rule out anything.

Governments have aimed to wean themselves off fossil fuels, relying on masts and blades for the wind turbines produced by the company, but Russia's invasion of Ukraine and disruptions caused by COVID-19 have negatively affected production.

Partly due to delays in developing and delivering a new range of onshore turbines, Siemens Gamesa has struggled, in particular, prompting majority shareholder Siemens Energy to launch a $4.2 billion bid to purchase the one-third stake it does not already own.

This year, the company's market value fell by 14.6 percent, compared with a 7.7 percent drop for market leader Vestas.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Chile Sun.

More Information

6 ℃

Fair in Santiago

South America

Section

Eagle Pass, Texas, Sees Continuing Influx of Migrants

WASHINGTON - The Eagle Pass area in Texas continues to experience an influx of migrants - the majority from Venezuela, ...

Brazil launches plan to boost national production of health items

BRASILIA, Sept. 26 (Xinhua) -- Brazilian President Luiz Inacio Lula da Silva on Tuesday launched a strategy that seeks to ...

Monte, Eternal Fire, 9z, MOUZ advance at ESL Pro League 18

(Photo credit: Kelley L Cox-USA TODAY Sports) Monte, Eternal Fire, 9z Team and MOUZ opened the ESL Pro League Season ...

Miami's Lionel Messi iffy for U.S. Open Cup final vs. Dynamo

(Photo credit: Sam Navarro-USA TODAY Sports) Lionel Messi will be a game-time decision when Inter Miami attempt to win their ...

EAM Jaishankar meets his UAE counterpart Abdullah bin Zayed in New York

New York [US], September 26 (ANI): External Affairs Minister (EAM) S Jaishankar on Tuesday met his UAE counterpart Sheikh Abdullah ...

Jaishankar to address United Nations General Assembly today

New York [US], September 26 (ANI): External Affairs Minister (EAM) S Jaishankar will address a high-level session of the 78th ...

World

Section