Siemens Gamesa to Streamline Operations and Achieve Profitability: What’s Next for Workforce Adjustments?

Siemens Energy recently announced plans to cut costs and make its Spanish wind turbine subsidiary, Gamesa, profitable. This could potentially lead to job cuts as part of the restructuring efforts. However, the company’s recent statements indicate that they will be making workforce adjustments while maintaining a stable number of employees in the future.

Siemens Gamesa currently has nearly 29,300 employees globally, with significant numbers in countries like Denmark, Spain, and Germany. The company is focusing on areas like offshore wind energy for growth while addressing workforce changes. The exact impact of the workforce reductions is still being evaluated and will involve negotiations with worker representatives in the coming months.

Despite challenges in its wind business division, Gamesa, Siemens Energy reported positive financial results for the second quarter with net profits of 108 million euros. However, losses are expected to increase by the end of the year. The company aims for Gamesa to return to profitability by 2026 and achieve a double-digit operating margin in the long term.

To streamline central functions like Human Resources, Legal, and IT under a unified global management structure, Siemens Gamesa has made management changes including the departure of CEO Jochen Eickholt and appointment of Vinod Philip. These changes aim to improve efficiency and transparency within the company. Union representatives at Siemens Gamesa have expressed concerns about job cuts but noted a positive commitment to onshore wind activities from new CEO Vinod Philip’s leadership team.

As discussions continue regarding these organizational changes in