On June 11, Vinod Philip, CEO of Siemens Gamesa, issued a stark warning that the company will slash production capacity and lay off staff as early as 2028 due to slow progress in Europe’s offshore wind rollout, potentially triggering an existential crisis for the whole industry.

Europe’s offshore wind expansion is bogged down by multiple hurdles. The EU has set an ambitious target of 120 GW of offshore wind capacity by 2030, yet a massive 40 GW gap already exists. Cumbersome permitting procedures, volatile auction rules and grid connection bottlenecks have delayed numerous projects. In Germany alone, developments totalling 16 GW face suspension, piling heavy financial pressure on wind farm developers.

Philip stated that while European turbine factories are operating at full tilt right now, a severe shortage of follow-up orders will hit the business starting in 2028. The firm has no immediate plans to shut down its European manufacturing sites, yet it will inevitably cut a large number of production workers and supporting resources to right-size capacity.

As the world’s largest offshore wind turbine maker, Siemens Gamesa runs six manufacturing facilities across Europe with around 20,000 employees, supporting an extensive industrial supply chain.

The European offshore wind sector has poured €14 billion into hitting the 2030 climate goals, yet delayed construction means these huge investments cannot deliver expected returns. European wind manufacturers are further squeezed by high domestic energy costs and fierce competition from Asian turbine suppliers.

Siemens Gamesa is now holding talks with national governments to unlock stalled projects and ease the industry’s bleak outlook.