Siemens Gamesa plans job cull
Full-year results include 6000-strong workforce ‘restructuring’
Siemens Gamesa Renewable Energy is to cut up to 6000 jobs worldwide as part of restructuring plans since the merger of Siemens Wind Power and Gamesa earlier this year.
The company said employees in 24 countries will be impacted, with 700 job losses already announced.
Siemens Gamesa said discussions with employee representatives will start immediately and information on the final agreements will be “communicated in due course”, once negotiations are complete.
“This plan, which will be implemented in the coming months, is a necessary step to strengthen the group and consolidate its position as a market leader,” the company said.
Siemens Gamesa confirmed the previously announced synergy target of €230m as a minimum and expects to achieve the target in the third year after the merger, 12 months ahead of schedule.
The company’s underlying earnings before interest and tax (EBIT) for the 2017 financial year fell 18% to €774m, down from €945m in 2016.
Revenue for the year increased 5% to almost €11.0bn from just over €10.4bn last year.
EBIT was down more than 63% to €192m between April and September from €525m in the same period last year, while revenue fell 12.3% in the period to just over €5bn from €5.7bn previously.
The company said the results were impacted by “specific onshore market conditions”, particularly in India and the UK, and “impairments relating to accounting adjustments to inventories”.
Siemens Gamesa chief executive Markus Tacke said: “Our financial performance is still not at the level we're all aiming for.
“Our integration efforts are proceeding ahead of schedule, and I’m confident that the decisions we’re making will allow us to better respond to changing market conditions, and to better serve our customers and other stakeholders.”
The company’s order intake amounted to 3GW at the end of September, but wind turbine sales decreased 15% in the second half of the financial year to €4.4bn, Siemens Gamesa said.
Image: Siemens Gamesa