Wind turbine maker Siemens Gamesa Renewable Energy SA (BME:SGRE) will lay off around 130 workers at its blade factory in Fort Madison, Iowa, according to multiple media reports.
The employees were given a notice on Monday, September 14. A Siemens Gamesa spokesperson told media that the decision was not taken lightly and the company "must adapt to the demands of the market."
The workforce reduction is taking place as the company plans to cease production of several types of older turbine blades at the Fort Madison factory.
Workers will be let go at various times in the next 60 days, but will continue to be paid throughout the notice period.
The news arrives less than a month after Siemens Gamesa announced its new strategy to return to profitability following a challenging fiscal year. Part of the financial resuscitation plan is geared towards saving the onshore wind turbine business, which suffered the most from supply chain disruptions as the COVID-19 pandemic spread globally, by introducing new and differentiating technology.
Earlier this summer, Siemens Gamesa announced a plan to close the blade factory in Aoiz, Spain, due to the plant’s lack of competitiveness, saying it wanted to focus on turbines with a longer rotor diameter.
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