Job cuts are looming at a wind power manufacturing facility in Ft. Madison. Siemens Energy, Inc. announced to employees Tuesday that it will have to cut 407 jobs in Ft. Madison. 220 employees will remain on the job.
The company says the layoffs are in response to uncertainty surrounding the future of the government Production Tax Credit (PTC) for new wind turbine installations. In addition, the company is seeing a decline in orders because of competition from natural gas, which currently has record low prices, as well as lingering effects of the recession.
In at statement, the company says, "These decisions are never easy and Siemens understands the impact this has on employees and the Ft. Madison community. Unfortunately, this business decision was necessary to respond to market conditions that are beyond our control and affecting the entire U.S. wind power industry."
Siemens Energy is Ft. Madison's largest employer. City leaders say the loss of 407 employees will have big implications for Ft. Madison.
"It is going to be a tremendous impact on our local economy. You can't lose 407 jobs and not have them have a big impact," says Ft. Madison City Manager Boyd Smith, "However, we're really pleased that they're going to continue to have operations here. If the business turns around, they'll be able to ramp up again."
In all the company will cut 615 workers primarily in Iowa, Kansas and Florida. The company will maintain a U. S. workforce of more than 1,000.
