Economy

Siemens Gamesa plans job cull

Siemens Gamesa says that the job cuts across 24 countries will be executed in the coming months while calling the move to be necessary to consolidate the group and boost its position in the wind turbine industry.

The company, which was created a year ago when Gamesa and Siemens combined wind power businesses to create one of the world's largest makers of wind turbines, had only previously announced plans to let go some 700 of its 27,000 employees.

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. It is also seen to help Siemens Gamesa, the merged entity of Gamesa of Spain and Siemens Wind Power, attain a synergy target of Euro 230 million (USD 267m) by the third year after the deal, or 12 months earlier than planned.

The decision to cut its workforce was revealed on the sidelines of the release of its financial results for the fiscal year 2017 in which its revenue grew by 5% to €10.96bn.

Revenue for the year increased 5% to nearly €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 past year, while revenue fell 12.3% in the period to just over €5bn from €5.7bn previously. These results were impacted by specific onshore market conditions, including the temporary suspension of the Indian market, and impairments relating to accounting adjustments to inventories in the United States and South Africa. Between April and September, revenue from the sale of wind turbines decreased by 15% to €4.4 billion, impacted by onshore markets that are facing challenging conditions, mainly India and the United Kingdom, as well as pricing pressure.The company registered strong performance in the offshore business with an increase of 16% in revenues.



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