A significant reduction in the workforce is on the horizon at Siemens Gamesa, which is considering laying off up to 4,100 employees. Of these, up to 550 may be located in Denmark.

This is according to Bloomberg News, which refers to unnamed sources with knowledge of the ongoing discussions.

The layoffs are part of the ongoing restructuring of Siemens Gamesa, the troubled wind unit under Siemens Energy.

According to Bloomberg News, the company is currently negotiating with the unions and will announce more concrete details at a later date. In addition to the Danish jobs, 430 jobs may be affected in Spain and 370 jobs in Germany.

The wind turbine manufacturer has long been challenged by quality issues that have prevented the company from selling several of its large and newest land turbines. This can also be seen in the order intake, which in the second quarter fell 75.7% from the same period last year to just EUR 881 million, according to the financial statements earlier this month. The company also reported a loss of 448 million euros - equivalent to DKK 3.3 billion - compared to 374 million euros in the same period last year.

The news of the impending layoffs comes a day after the Danish Export and Investment Fund awarded DKK 634 million in green investment support to selected companies. The money will go to Siemens Gamesa, which will use the support to finance new production in Denmark that will create 500 jobs, it was announced on Monday.