Massive Companies Are Having Job Cuts
Since the beginning of 2024, it seems to have become somewhat of a trend for large companies to be at the receiving end of letting hundreds, if not thousands, of their employees go.
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The main reason for these layoffs can either be economic conditions or a restructuring of the business. In these cases, it doesn’t matter how well an employee performs at work, as they can still find themselves at the receiving end of mass layoffs.
Prioritizing Artificial Intelligence
Another supposed reason why many companies are letting their employees go is due to Artificial Intelligence (AI). It has left many people across multiple businesses worried they will lose their jobs due to the emerging new technology.
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Google is one company that began cutting jobs at the beginning of 2024 to prioritize its focus on AI. This, combined with the need to cut down on operating costs, continues to worry employees about whether they will still be in their jobs by the end of every month.
The Highest Amount of Layoffs Since the Great Recession
The great recession in the U.S. happened between December 2007 and June 2009. With the amount of layoffs that have been happening in companies across the U.S. in 2024, this number has now surpassed that.
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The tech and finance industries seem to be at the forefront of this, as they opt for the use of technology rather than actual human beings. However, many other industries are also experiencing these mass layoffs, and there doesn’t appear to be any end in sight.
Siemens Gamesa Is Cutting 4,100 Jobs
Siemens Gamesa, the wind turbine division of Siemens Energy, is one company that has been forced to carry out mass layoffs. This likely came as a surprise to many as the business is one of the leading renewable energy companies.
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The total number of jobs said to be lost is around 4,100, which is 15% of the company’s workforce. However, it is currently unknown exactly which jobs are at risk and when the layoffs will happen.
Siemens Gamesa Has Been Having Quality Issues
One of the main reasons that has likely led to these layoffs is the company’s quality issues, which have led to a drop in sales. In the second quarter of the year, its order intake fell by 75.7%.
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In that same period, it reported a loss of over $485 million. Compared to the same time period in the year prior, that was over $405 million.
Siemens Gamesa Staff Found Out About the Layoffs in a Letter
When a letter from Jochen Eickholt, the unit’s Chief Executive, was handed out to the staff at Siemens regarding the mass layoffs, the last thing they thought it would be about was them potentially losing their jobs.
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The letter stated that the current situation meant changes on a larger scale than just being organizational. This comes from the company adapting to lower business volumes, reduced activity and a streamlined portfolio.
Siemens Energy Announced Job Restructuring
The wider company, Siemens Energy, announced at the beginning of May 2024 that there would be some sort of restructuring occurring at the company’s Gamesa unit, which would result in some job adjustments.
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Once this has happened, the company expects to remain pretty constant over the next few years in other areas, such as offshore growth. But instead of people losing their jobs entirely, they hope to move them to other areas of the country.
Restructuring Is Happening at the Top
Staff at the bottom aren’t the only ones facing restructuring and job losses; restructuring is also happening at the top of the company.
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Eikholt has announced he will be stepping down as CEO of Siemens Gamesa in July 2024. His replacement will be Siemens Energy’s head of global functions, Vinod Philip.
Consultations With Stakeholders Are Ongoing
Siemens Gamesa is yet to announce which jobs will be lost, as consultations are currently ongoing with company stakeholders to decide on what the best course of action is.
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Once these jobs are decided, the company is also planning on maintaining a stable workforce by reallocating job positions and hiring other employees in other parts of the business.
Multiple Countries Will Be Affected
Siemens Gamesa is a company that holds offices in multiple countries. As a result, this means that the job losses won’t just happen in one country, as the plan is for people across the company’s multiple locations to be affected.
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It is currently believed that 550 jobs will be affected in Denmark, 430 jobs in Spain and 370 jobs in Germany. However, these numbers aren’t exact, and the final outcome could look entirely different.
The Result Will Only Be Known at the End of Negotiations
What makes it even more difficult for employees is that the company has said it will not know what the end result will be until the end of the consultations and negotiations.
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The company is planning to speak with everyone involved, including employees, to gather the full picture and determine whether it will be possible to move those who will lose their jobs to other areas of the company.