Siemens Gamesa Plans to Lay Off up to 6,000 Employees

Zamudio, Spain - Siemens Gamesa Renewable Energy today presented its results. Regarding fiscal year 2017, revenue increased by 5% to €10,964 million, while underlying EBIT was €774 million (-18%) with an EBIT margin of 7%.

Between April and September, revenues fell 12.3% while underlying EBIT came to €192 million (-63.4%) with an EBIT margin of 3.8%. According to Siemens Gamesa 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. Excluding these impacts, revenues fell just 2% with an EBIT margin of 7.3%2. Excluding also currency effects, revenues were flat. In India the government is planning 3 GW in central auctions up to next March, and the market is expected to fully recover in 2019.

"Our financial performance is still not at the level we're all aiming for. But it's clear that we are making positive progress as we carry out our plan to make this company an industry leader. 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," said Markus Tacke, CEO of Siemens Gamesa.

In the context of the ongoing integration of legacy structures, the company has announced a restructuring plan affecting a maximum of 6,000 employees located in 24 countries (700 already announced). As Siemens Gamesa points out, discussions with employee representatives will start immediately, in accordance with applicable rules and regulations in each country. Information on the final agreements will be communicated in due course, once negotiations are completed. According to Siemens, 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 previously announced synergy target of €230 million is confirmed as a minimum and the company expects to achieve this target in the third year, 12 months ahead of schedule.

Source: IWR Online, 07 Nov 2017