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Siemens Gamesa cuts 4,100 jobs in major workforce overhaul!

Siemens Gamesa cuts 4,100 jobs

Siemens Gamesa, which is the wind turbine division of Siemens Energy, has announced a significant reduction in its workforce. Specifically, the company plans to cut 4,100 jobs, representing around 15% of its current employees. This decision was communicated by the unit's Chief Executive, Jochen Eickholt, in an internal letter to the staff, which was seen by Reuters on Tuesday. The announcement highlights the scale of the workforce reduction and underscores the challenging decisions being made to navigate the current business environment.

In the letter, Eickholt stressed that the current situation demands more than just superficial organizational changes. The company must adapt to the realities of lower business volumes and decreased activity in non-core markets. Additionally, there is a need to streamline the product portfolio to focus on areas that promise higher returns and efficiencies. These adjustments are seen as essential to ensuring the long-term viability and competitiveness of Siemens Gamesa in a rapidly evolving market.

A spokesperson for Siemens Energy stated that the exact number of jobs affected will be made public once consultations with all stakeholders are completed. The spokesperson declined to provide further comments or details at this time, indicating that the company is still in the process of determining the full impact of the job cuts. This approach suggests a careful and considered process to manage the changes and communicate them effectively to all involved parties.

The job cuts plan was initially reported by the Spanish newspaper El Correo. This report came shortly after Siemens Energy detailed major restructuring moves at Siemens Gamesa. These restructuring efforts included staff reductions as a key component. The timing of these announcements indicates a coordinated effort to address financial and operational challenges within the company, aiming to streamline operations and improve overall performance.

Eickholt mentioned in his letter that the primary goal is to maintain a stable total workforce at Siemens Gamesa by reallocating jobs and hiring more employees in other parts of the division. This approach is intended to balance the need for cost reductions with the necessity of retaining critical talent and capabilities. These comments echo earlier statements made by Siemens Energy CEO Christian Bruch, who had indicated similar plans to manage workforce changes strategically and thoughtfully.

Eickholt acknowledged the difficulty of the announcement, particularly in light of the various challenges employees have faced over the past year. He expressed understanding and empathy for the workforce, recognizing the emotional and professional impact of such news. Despite the immediate challenges, Eickholt emphasized that the wind business, including the Onshore segment, has a promising future.

He reassured employees of the company's commitment to its wind energy initiatives, aiming to instill a sense of optimism and forward-looking perspective. Eickholt, who will be stepping down at the end of July, used his final communications to underline the strategic importance and future potential of the company's wind energy business.



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