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Siemens to Cut 615 US Wind Energy Jobs as New Orders Dry Up

Richard Weiss, Bloomberg
September 19, 2012  |  7 Comments

Siemens AG will eliminate 615 jobs at U.S. factories producing windmills in response to declining orders, dealing a blow to Chief Executive Officer Peter Loescher's push into environmentally friendly energy sources.

“The industry is facing a significant drop in new orders, and this has an unfortunate consequence on employment in this segment of the power industry,” Munich-based Siemens said today in a message to employees that was obtained by Bloomberg.

The cuts account for more than a third of the workforce that Siemens has built up in its U.S. wind-energy business, an operation that helped the company to national prominence after President Barack Obama visited a facility in Iowa in 2010. Siemens said that it has invested $100 million to establish its U.S. wind-power subsidiary over the past 5 years.

The reductions are a setback for Loescher’s attempt at bolstering the company’s portfolio of so-called green products that are environmentally friendly. Siemens is in the process of realigning its business after having to curtail its earnings forecast twice this year, and the company will present the results of its revamp to management next month.

Copyright 2012 Bloomberg

Lead image: Job cuts via Shutterstock

7 Comments

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ANONYMOUS
September 28, 2012
It is true that the PTC has helped the wind industry. That does not mean that the wind industry will fail without it. Unlike the oil industry, the wind industry will find a way to thrive without the PTC. There will be some casulities that goes without saying. Unlike the oil industry who has received subsidies since 1916 and continue to receive them to this day, the wind industry will survive without the PTC. There are some who say that the PTC should not be extended and I could not agree more. As a taxpayer I am sick and tired of giving money to companies who do not manage their business and then expect a handout to survive. Let the weak go by the wayside and the strong will remain. That should save the taxpayers a lot of money. For example, the oil industry receives between 133 billion and 280 billion a year in federal, state and local aid. Just imagine what that money could do to help balance the budget. Put everyone on a level playing field and see who survives.
Sherry Hellmuth
Sherry Hellmuth
September 21, 2012
Severi and all other pro windies never seem to want to discuss the other (besides screwing the American taxpayer) ugly side to wind--and that is the ton of rare earth minerals required per turbine. Do some research and check the pollution of our earth that China engages in as it mines the rare earths--China has about 97% of the world's rare earth minerals.
Joe Barnes
Joe Barnes
September 21, 2012
Severi,
Cost of course is not the only criterae. If I patented one one those wind turbines in todays world they would stay on the shelf for ever. They are simply childrens toys and as sherry said should not have millions of taxpayers dollars thrown at them just so that these large Foriegn corporations can employ a few hundred people, pretending that they are God's gift to the Renewable energy of this world. Why should we finance multi million dollar projects when the Patent Offices of the world have far superior devices costing a fraction of the price and capable of producing much larger outputs of clean energy than these silly windmills. I shall be overjoyed when the last windmill gives up it's life, then, and only then, will our Governments change their attitude towards new technology.
It is so frustrating here in the United Kingdom hearing about new wind farms springing up here there and everywhere.Our Government are clearly not the slightest bit interested in looking to see new projects that are pouring out of the Patent Offices on a daily basis.I have a friend that has invented Solar Paint. It simply paints on to roof tiles, garden fences or any large surface and each dwelling has it's own power station out of a tin across the Continents. The Naysayers should move over and leave it to the innovators to advance their projects and stop throwing money into the wind.
Severi Gustaf
Severi Gustaf
September 21, 2012
It is truly sad to hear some of the comments posted on these sites. Wind turbines have made significant progress in reducing costs but still cannot compete with fossil fuels. One of the reasons that fossil fuels have not increased in price has been due to the introduction of new technologies thus diversifying supply. I suppose the concepts of sustainability and diversification are too complex for some so it would not help to go into these issues any further. As long as the cost is the only criterae then basically you can forget about developing anything new. Remove the scrubbers and go back to burning dirty coal.
Sherry Hellmuth
Sherry Hellmuth
September 20, 2012
Glad that wind projects are drying up. That fact tells the world that wind is not sustainable on it's own. Once the PTC and the billions in subsidies end, the BIG WIND CORPS won't continue trying to push nonsense that isn't profitable. I am so sick of these big corps not paying their own way and their fair share of taxes (and doing that on the backs of the American taxpayer). Siemens is just another foreign corp taking advantage of American taxpayers when it comes to their wind division (and probably more).
Joe Barnes
Joe Barnes
September 20, 2012
I regret this is the beginning of the end of these windmills. They are and never have been up to the task of producing vast amounts of electrical energy that can warrant the title of Renewable Energy machines.Wind, wave and solar technology are the future of this industry when they are combined into one simple farm and working in conjunction with each other. I regret that todays windmills will shortley fade away into history, but at least they will leave their mark which is what progress is all about.
ANONYMOUS
September 20, 2012
This is just the beginning. More cuts are expected at Siemens division manufacturing gearboxes in Illinois.The industry is going through a period of retrenchment as it would be expected as the industry matures into a sustainable industry. Over the long run it will help reduce the cost of energy (COE) for wind, consolidate winners and losers in the industry and bring capacity to mangeable level. All to better align with fossil fuel. After the current operating cost focus, next focus should be on reducing component costs with new materials and processes, driving innovation from financing (debt/bond markets), to materials, to air foil, siting and resource planning, design for six sigma, lean, to optimum back office functions; improved reliability and emulating automotive mind set of $x/kg regardless of features to bring COE close to natural gas without the subsidies. This is definitely doable now as the industry has a sharp focus on COE, provided there is a short runway left with some subsidy. Let's keep it a bipartisan effort without the acromony to win diminishing subsidy over a limited period of 2-3 years.

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