Siemens Energy to restructure management of its troubled wind turbine division 

Siemens Energy announced that Jochen Eickholt, who became CEO of Siemens Gamesa in March 2022, will step down at the end of July and will be succeeded by Siemens Energy board member Vinod Philip. The company stated that this change reflects a need for a generational shift in the struggling wind turbine unit, which has been operating at a loss for several years.

The company also revealed plans for job and capacity reductions as part of efforts to address losses in this sector.

Meanwhile, Siemens Energy, a spin-off from Siemens that provides equipment to the power industry, has revised its 2024 outlook upward, driven mainly by strong performance in its power grid business. 

This news caused a 6.6% increase in the company’s pre-market share value.

Also read: Siemens Energy hits $1.7 billion net profit in Q1, prioritizes offshore wind quality concerns

“It is only fair to emphasise that the causes of the quality problems did not fall under his tenure as CEO,” said Siemens Energy CEO Christian Bruch.

Moving ahead, Siemens Gamesa will concentrate its onshore business efforts on two primary markets, Europe and the United States. This refined strategy reflects a more streamlined approach that was initially announced late last year.