Siemens Gamesa announces “restructuring and personnel changes” and appoints new CEO
Although it managed to cut its losses by 34% between October and March, the wind energy producer has not ruled out further personnel changes, which it has not quantified and which it hopes to cover through relocations. Vinod Philip will succeed current CEO Jochen Eickholt from 1 August.
EG | EITB Media
Multinational company Siemens Energy announced “important measures to restructuring“in its subsidiary Siemens Gamesain which he will make a new one “template adjustment” to overcome millions of losses in recent years (799 million in the last six months) and return to profitability from 2026.
In addition, the German group reported dismissal of current Gamesa CEOJochen Eickholt, who will replace him Vinod Philip starting in August.
In a statement announcing the results of the first financial semester, Siemens Energy does not quantify Quantity layoffs, although the company expects Siemens Gamesa’s workforce to “remain more or less constant” in the coming years as it expects the offshore wind business to continue to grow. According to his plans, “the maximum possible reduction in the workforce in the affected areas is planned through redistribution to other areas.”
“Jochen Eickholt and Vinod Philip will finalize specific measures in the coming weeks, which will be discussed with workers’ representatives in the coming months,” they add.
The German company has three factories in BAC (Zamudio, Asteazu and Munguia) – they employ 1,011 people – and two more in Navarre (Sarriguren and Arazuri) – 1,823 people.
In this sense, the German parent company reports that Gamesa will keep their two lines of business —coastal or onshore wind and offshore or sea wind – despite the serious problems that arose in the division of land. It should be remembered that a malfunction of the turbine of onshore wind turbines (models 4.X and 5.X) resulted in the cancellation of orders and millions in compensation for delayed deliveries. As such, the onshore wind business will continue in Europe and the US as both markets offer a “stable regulatory framework.”
Losses 799 million
The wind energy producer lost 799 million euros in its first financial semester, which ran from October 2023 to March 2024. 34% less than 1.209 million in the previous year.
The German multinational that owns Gamesa says its profits continue to be hit by problems with onshore wind turbines, as well as rising production costs and startup problems in the area. offshore in the previous year.
Looking ahead to 2024, Siemens Energy expects its subsidiary’s earnings to be “significantly higher” than in the first half, particularly due to growth in offshore.
Siemens Energy stopped selling the turbines last year after discovering faults that led to losses of $4.532 million in fiscal 2023 and forced the German state to bail them out.
Despite Gamez’s negative influence, Siemens Energy earned 1.618 million. in the first financial half, compared with a loss of 677 million a year earlier due to the sale of 18% of the company in India.
About CC’s “greatest concern”. OO to the silence of the Basque government
COLUMBIA REGION. OO. Siemens Gamesa expressed “extreme concern” about the announcement of the new restructuring, a measure it said it did not expect.
In a statement to Europa Press, the general secretary of the trade union section COLUMBIA REGION. OO. at Siemens Gamesa Spain and the president of one of the company’s seven works councils in Zamudio (Vizcaya), Clara Fernandez, clarified that they did not have details on the impact, although a meeting between the company and the unions was scheduled for this Wednesday to present the results. them.
Clara Fernandez stated that the “positive message” they see in the message is that “they are finally publicly stating that they remain committed coastal and Spain coastal“.
In turn, sources in the Department of Economic Development, Sustainable Development and Environment Basque government explained to the same agency that CEO Jochen Eickholt told them the news last Tuesday, although they declined to comment further because, as they stressed, it was time for the company to directly communicate its decisions to all affected agents, a connection that he believes , should also be carried out in Euskadi.