Siemens Energy will suffer greater losses than anticipated as a result of its Russia business.
Siemens Energy, like many companies, put a halt on new Russian business in response to Russia’s invasion of Ukraine. According to Reuters, that decision will result in the company reporting a bigger loss than originally anticipated.
The company also cited its investment in wind turbine maker Siemens Gamesa as a reason for its losses. Siemens Gamesa has struggled to capitalize on the increasing shift to green energy. The company’s losses have prompted threats of layoffs and a $4.2 billion attempt by Siemens Energy to acquire the remaining third of the company it doesn’t already own, according to Reuters.
“We expect the new management at Siemens Gamesa now to implement a rigorous turnaround plan,” said Siemens Energy Chief Executive Christian Bruch.