Siemens Energy to hire 10,000 new staff in $1.3 billion push to boost grid unit

By Louis Goss

Siemens Energy is planning to hire 10,000 new staff over the next six years as part of an ambitious EUR1.2 billion ($1.3 billion) plan to boost its grid technologies business in a bid to capitalize on a boom in the electricity market.

The plans will see the German company build new factories and expand its manufacturing capabilities in Europe, the U.S. and Asia, the head of Siemens Energy's grid technologies business, Tim Holt, said in an interview with the Financial Times.

"We see this huge boom coming," Holt said, as he explained that fast-growing demand for electricity, the build-out of new renewable projects, and the need to replace aging infrastructure is expected to drive up demand for grid equipment.

Shares in Siemens Energy (XE:ENR), listed on the Frankfurt Stock Exchange, increased 4% on Tuesday. Siemens Energy shares are up 109% in the year-to-date on the back of its push in May to turn around its troubled wind power business following four years of losses.

Siemens Energy's plans are set to see the grid technologies unit grow its workforce by two-thirds, by hiring 10,000 new workers worldwide, of whom around 40% will be in Europe, 20% in the U.S., 20% in India, and the rest from elsewhere in Asia and Latin America.

Holt said Siemens Energy's grid technologies unit has already seen its order more than double in recent years, from EUR7 billion in 2021 to EUR15 billion in 2023, with the business having already received EUR12 billion in orders in 2024 so far.

Siemens Energy is currently the world's second largest grid infrastructure equipment manufacturer behind Japanese giant Hitachi (JP:6501). The Munich headquartered company, which was split out of German conglomerate Siemens (XE:SIE) in July 2020, currently employs around 99,000 staff in 90 countries worldwide.

In May, Siemens Energy outlined plans to revamp its struggling wind power subsidiary, Siemens Gamesa, by cutting 4,100 staff and replacing its CEO after the company admitted its 4.X and 5.X turbines were impacted by manufacturing defects.

More broadly, the renewables sector has suffered in the face of higher borrowing costs, due to the capital-intensive nature of building out new wind and solar projects.

Siemens Energy was approached by MarketWatch for comment.

-Louis Goss

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07-02-24 0815ET

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