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 Middle East Star.

More Information

37 ℃

Fair in Dubai

International Business

Section

Amazon pays $1.7 billion for vacuum maker iRobot

NEW YORK CITY, New York: Amazon announced this week that it had purchased robotic vacuum maker iRobot for approximately $1.7 ...

American credit card debt rises, along with cost of living

NEW YORK CITY, New York: A New York Federal Reserve report released this week indicated that Americans are struggling to ...

Amazon opens first distribution center in Ireland, to hire 500

DUBLIN, Ireland: With the opening of a new distribution center in Dublin, Amazon says it will provide faster deliveries to ...

Marriott surpasses quarterly revenue and profit estimates

BETHESDA, Maryland: Marriott International surpassed its quarterly revenue and profit estimates, driven by better than expected occupancy levels and higher ...

Strong Ireland economy reflected in low 4.2% unemployment

DUBLIN, Ireland: Ireland's unemployment rate, reported at 4.2 percent, has reached its lowest rate in 21 years.This follows the Covid ...

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 ...

International

Section