Siemens Gamesa has announced that it will start a new one soon cut out in his templateas it has capabilities beyond its needs without specifying the number of employees and countries that will be affected by these layoffs.
“Differences between the required and the available capacities” can be observed, said the company’s CEO, Jochen Eickholt, at a press conference, adding that the main aim was to “double” the terrestrial business.
“We see that sometimes our overhead and administrative cost structures create structural costs that are disproportionate to what the business needs,” he said.
The manager explained that a period was now open to analyze these staff cuts “in detail” and to open “the debate with the social partners” before “decisions are made”.
As the Reuters agency reported on Monday, Siemens Gamesa is examining the possibility of cutting around 2,500 jobs. However, Eickholt did not want to give any figures.
At the end of June last year, the group employed more than 27,380 people worldwide. In Spain, the company has around 4,700 employees and a total of nine plants.
Since the merger of Gamesa with the wind power division of Siemens in 2017, the workforce at the wind turbine manufacturer has been reorganized.
This Tuesday, Siemens Gamesa announced losses of 1,226 million euros in the first nine months of its fiscal year, which is more than triple the ‘red figures’ of 368 million euros that the group recorded a year ago.
In addition, the group indicated that as part of its new “Mistral” strategic program, it will review its current operating model to achieve a “simpler and more agile organization that improves its efficiency and effectiveness,” details of which were released on October 1.
RENEGOTIATE CONTRACTS WITH CUSTOMERS DUE TO INCREASED PRICES
On the other hand, Eickholt insisted on the need to renegotiate contracts with its customers due to increased energy prices and raw materials.
“Material prices are going up, we’re seeing long-term contracts coming up in 2021, 2020 and 2019 and those commitments need to be discussed, which is what we’re doing with customers right now,” he said.
In addition, the CEO of Siemens Gamesa pointed out that he expects material prices to continue to rise for the 2023 fiscal year. “It won’t help us, in fact we continue to see rising material costs,” he added.