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

Wed, 10 Aug 2022

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 Bristol Star.

More Information

25 ℃

Fair in Bristol/Lulsgate

United Kingdom

Section

As Heathrow reduces passengers, British Airways stops selling tickets

LONDON, England: British Airways has halted ticket sales for short-haul flights that depart before the middle of August from London's ...

US baseball teams to play for UK crowd in London in 2023

LONDON, England: In 2023, America's Major League Baseball is set to return to London for the first time since 2019, ...

Report says England, France suffered driest July in decades

LONDON, England: During the record-breaking heatwave that swept Europe, England and France recorded their driest July since 1935 and 1959, ...

Profits at British Petroleum of $8.45 billion match 14 year high

LONDON, England: Due to high margins and trading on the back of soaring energy prices, British Petroleum recorded second quarter ...

Likely UK leader Truss says new junk food taxes not on her agenda

LONDON, England: Liz Truss, the frontrunner to become the next UK prime minister, said she would not impose new taxes ...

Arrested at Windsor Castle in 2021, UK man charged with Treason Act

LONDON, England: Prosecutors and police have charged a 20-year-old man, arrested in December 2021 with a crossbow while on the ...

International

Section

Critical of media, Solomon Islands weighs taking over broadcaster

SOLOMON ISLANDS: In a move that opponents said is aimed at controlling and censoring the media, the government of the ...

Accidental airbag explosion blamed for 20th US deaths

WASHINGTON D.C.: In July, a Florida man was killed by exploding Takata airbag inflators, possibly becoming the 20th death in ...

After series of assassinations, Israel says it has eliminated all IJ leaders

Israel has launched an unprovoked war against the Palestinian resistance group Islamic Jihad. The Israeli army assassinated a high-ranking commander ...

American drone that killed Al Zawahiri in Kabul possibly launched from Kyrgyzstan

ISLAMABAD, Pakistan - Pakistan categorically denied on Thursday that a U.S. drone strike in Kabul that killed al-Qaeda chief Ayman ...

Indonesia workers strike when ticket price jumps to see Komodo dragons

EAST NUSA TENGGARA, Indonesia: Hundreds of Indonesian tourism workers went on strike this week to protest a sharp rise in ...

Treasure found in 350-year-old Spanish shipwreck off Bahamas

NASSAU, Bahamas: A team of explorers have announced that they have uncovered a treasure, including coins, gemstones and priceless jewels, ...

Movie Review

Miracle in Milan (Miracolo a Milano)