Adwen will cut 260 jobs in Germany as a consequence of its integration into Siemens Gamesa, as well as due to the parent company’s global restructuring plans.
The German turbine developer said it was planning to reduce the current number of 480 positions by 260 mostly because of the lack of new orders, which corresponds to the change of the company’s business model, focused on servicing the installed Adwen turbines.
“The lack of new orders has put Adwen into this difficult situation. In conjunction with excess capacities and the increasing cost pressure in the wind industry, the intended changes are inevitable,” said Hans-Rolf Huppert , Managing Director and CFO of Adwen.
The job reduction is a further step in the company’s restructuring process that already saw the discontinuation of blade production in Stade with a corresponding balance of interest and social plan, a voluntary program for employees to transfer to Siemens Gamesa’s factory in Cuxhaven and a program in certain organizational areas to leave the company, Adwen said.
The management will begin negotiations with the workers’ council immediately, the company said, adding that the implementation of the plans is expected to be completed by the end of September 2020, with the site in Bremerhaven retained for service activities.
“The anticipated personnel adjustment is a hard cut for Adwen and a challenging situation for the affected employees and their families. We will be working closely and in a constructive way with the workers’ council on concluding a balance of interest and a fair social plan as fast as possible,” said Carsten König , Managing Director and CEO of Adwen.
The planned reductions have already been considered in Siemens Gamesa’s restructuring plans announced in November last year, which include cutting 6,000 jobs in 24 countries over three years.