Siemens cuts 32% of workforce

Posted

Legal ruling, supply chain issues lead to calibration

BY CHUCK VANDENBERG
PCC EDITOR

FORT MADISON - A series of lawsuits between GE and Siemens over theft of trade secrets, patent infringements and rulings limiting the wind power companies ability to import and export have resulted in a reduction in workforce locally.

At meetings with employees this morning, Siemens-Gamesa announced 121 employees would be laid off permanently which represents about 32% of the current workforce.

The workforce at Siemens the Hutchinson, Kansas facility were reduced by 69 employees.

After today’s workforce reduction, 254 employees remain at the Fort Madison facility and 117
employees remain at the Hutchinson facility. Siemens-Gamesa employs approximately 1,700 highly
skilled workers across the United States, in manufacturing, assembly, service and support, and offices.

Lee County Economic Development Group President Dennis Fraise said the staff at LCEDG is working with company HR officials to help relocate some of the displaced workers. Fraise said he confirmed the layoffs with plant manager Tony McDowell early Wednesday afternoon.

"Lee County EDG will work with plant leaders and the IowaWORKS Rapid Response team to help the displaced workers find new opportunities in Lee County," Fraise said.

Siemens officials said the reduction was motivated by two reasons. A ruling of the International Trade Commission after several legal tussles over power generation patents and trade secrets between GE and Siemens, and a lag in the renewables market.

"Two primary factors contributed to this decision,” said Shannon Sturgil, CEO of Onshore North
America. “While the final ruling of the ITC on the recent patent challenge case brought by a competitor
was ultimately in our favor, we were temporarily prevented from pursuing new orders during the
determination period.”

“Additionally,” Sturgil continued, “the renewables market in the United States has temporarily slowed in
anticipation of U.S. climate legislation. This impacts our ability to rebound quickly to normal levels of
production in those facilities. These measures are designed to enable Siemens Gamesa to bridge the
gap at its production facilities and prepare for when the market resumes its expected growth levels.”

The company is working to find opportunities for employees in other areas of the business, where
possible. All affected employees will be provided with a comprehensive separation package, which
includes severance pay, benefits continuation, career counseling, resume preparation and job
placement assistance.

Siemens Gamesa remains committed to the U.S. renewable energy market, and to its U.S. workforce.
In North America, the company has installed more than 13,000 wind turbines, which provide
approximately 29 GW of clean power, enough for approximately 8 million homes.

Since the facility opened in 2010, workers at Siemens Gamesa’s plant in Hutchinson have produced
approximately 5,500 nacelles, which sit atop the wind tower, supporting the rotor and housing
components for electric power generation. Workers in the Fort Madison, Iowa facility, which opened in
2006, have produced more than 20,000 wind turbine blades delivered to projects in the Americas,
Europe and Africa.

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