Siemens Gamesa to Cut Costs, Reduce Workforce in Push for Profitability: A Look at the Company’s Restructuring and Leadership Changes

Siemens Energy announced at the end of last year that it plans to reduce costs by up to 400 million euros in order to make its Spanish wind turbine subsidiary, Gamesa, profitable. The company stated that workforce adjustments will be necessary as part of efforts to simplify and optimize its structure, but hopes to keep the total number of employees relatively constant in the coming years.

As of September 30, Siemens Gamesa employed almost 29,300 workers worldwide, with significant numbers in countries like Denmark, Spain, and Germany. The company plans to negotiate concrete measures with worker representatives in the coming months to determine the exact impact of the workforce reduction on Spain.

Siemens Energy also announced changes in leadership, with CEO Jochen Eickholt departing and Vinod Philip being appointed as his successor. 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.