Jochen Eickholt to step down as Siemens Gamesa CEO

Jochen Eickholt has informed the Siemens Gamesa Board of Directors that he will step down from his position as CEO effective 31 July 2024.

He will be succeeded by the former head of Global Functions Vinod Philip who will continue to integrate the wind power division into the Group's management structure.

The management change was announced together with Siemens Energy's 2024 Q2 financial results. The results show that while there is a raised full-year outlook and an increase in quarterly operating profit, Siemens Energy is still struggling with the effects of the underperformance of its wind business.

Siemens Energy CEO Christian Bruch commented in a statement: "In a very difficult situation at Siemens Gamesa, Jochen laid the central foundations for the urgently needed reorganisation and new start within Siemens Energy. It is only fair to emphasize that the causes of the quality problems did not fall under his tenure as CEO.

"With the concrete implementation of the multi-year restructuring plan agreed today, the time has now also come for a generational change at Siemens Gamesa. Vinod Philip is an excellent and highly esteemed manager. He has the best of both worlds: As Head of Service of Large Power Generation he has gained operational experience and as Chief Technology Officer and responsible Member of the Executive Board of the Global Functions Division he has successfully managed central functions critical to success."

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To improve operating margins and return the company to profitable growth, Siemens Gamesa has initiated restructuring measures and steps to achieve long-term strategic development.

While the company intends to remain active in both onshore and offshore sectors, these measures will see it focus its onshore business on regions with stable regulatory frameworks, specifically Europe and the US.

In offshore wind, it said its priority is to increase its production capacity, on top of its current operations in Aalborg (Denmark), Cuxhaven (Germany) and Le Havre (France).

The Q2 results state that Siemens Gamesa now assumes a comparable revenue growth of 10% to 12% (previously 0% to positive 4%) and a negative profit before special items of around €2 billion ($2.15 billion).

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Said Bruch: “The turnaround of our wind business is still our focus. To this end, we are taking steps to reduce complexity and create a more focused business.”

The new organisational model being implemented aims to reduce hierarchical levels and regulate responsibilities more clearly in order to address operational and quality issues.

According to the Siemens Energy statement, the organisational realignment will also result in job adjustments, although the number of employees at Siemens Gamesa is expected to remain roughly constant over the next few years..."