Siemens Gamesa, in a release, says that it expects the Mistral program, launched in May, to set a clear roadmap for the company to unlock its long-term potential.
As part of the initial effort to stabilize the business, Siemens Gamesa defined a new operating model with a clear focus on processes and a lean organization, which will be effective as of January 1, 2023. In this context, the company carried out an organizational review to identify synergies across several functions and to adjust its manufacturing footprint and capacity to match market demands. As a consequence, around 2,900 positions will be affected by fiscal year 2025 across the company, out of which 1,900 will be in Europe. The company is working with employee representatives to mitigate the impact of this adjustment as much as possible through natural attrition, internal transfers and early retirements.
Additionally, Siemens Gamesa is working on strengthening specific areas within key leading markets to capitalize on its strong market position in offshore and to grow across the entire value chain while driving a project-centric business approach.
Under the new operating model, Siemens Gamesa will strengthen the teams of the COO (Chief Operating Officer) and CTO (Chief Technology Officer) to accelerate harmonization and standardization across the company. The company recently announced the appointment of Morten Pilgaard Rasmussen as CTO, effective January 1, 2023.
With the new organizational setup, Siemens Gamesa is preparing to reap significant cost synergies through the potential integration into Siemens Energy. On November 7, the Spanish National Securities Market Commission CNMV approved the voluntary cash tender offer by Siemens Energy to acquire all outstanding shares in Siemens Gamesa which it does not already own.
Following a challenging year, Siemens Gamesa begins fiscal year 2023 in an equally complex environment characterized by persistently high inflation and supply chain disruptions that severely affect the cost of materials.
However, after this transition year, it expects the market environment to normalize. This will enable Siemens Gamesa to regain profitability and resume cash flow progressively in the future.
This progression will be supported by three key levers: sales growth supported by a global increase in demand, especially in offshore; the results of the Mistral strategy program; and leveraging long-term relationships with suppliers and customers to maximize value creation throughout the wind energy chain. This will help protect wind turbine manufacturers and other players against inflation and price volatility.
By 2025, Siemens Gamesa aims to have streamlined its platform strategy and achieved a scalable, cross-application operating model for offshore, onshore and service – combined with a highly commoditized supply chain that is robust against market disruptions.