GE lays off staff at onshore wind facility as part of recovery strategy

By Ayushi Garg  | Date: 2022-10-09

GE lays off staff at onshore wind facility as part of recovery strategy

General Electric Company is reportedly cutting off employees at its onshore wind subsidiary as part of a plan to restructure and resize the company while dealing with sluggish demand, increased costs, and supply-chain bottlenecks.

According to the sources, the company informed employees about the layoffs throughout North America, Latin America, and the Middle East & Africa. Additionally, it intends to reduce its onshore wind workforce in Europe and the Asia Pacific in the near future.

Sources claimed that the layoffs will affect 20% of the onshore wind unit's American employees which would include hundreds of personnel. Moreover, in reaction to market realities, GE acknowledged that it was streamlining its onshore wind business; nevertheless, it made no direct mention of any job layoffs.

GE Renewables spokesperson stated that these were difficult decisions that do not reflect on the employees devotion and hard work but were necessary to ensure that the business could compete and enhance profitability over time. As of 2021, GEs onshore wind division, which is its largest business, accounted for a global workforce of 38,000 individuals. However, the unit has been struggling with increasing raw material costs brought on by supply-chain pressures and inflation.

In the United States, GEs most lucrative onshore wind market, legislative uncertainty following the expiration of tax subsidies for the production of renewable electricity last year, has hurt customer demand, resulting in a decline in the unit's revenues this year.

However, it's not just GE. Increased competition, supply disruptions caused by the COVID-19 pandemic, and increasing metals prices aggravated by the Ukraine war have made it harder for maximum wind turbine manufacturers to produce profits, even as governments and businesses urge for more renewable energy to combat climate change.

In similar developments, competitors such as Siemens Gamesa Renewable Energy S.A. disclosed a proposal to eliminate 2,900 positions, primarily in Europe, following a series of revenue warnings this year, and Vestas Wind Systems A/S, a Danish manufacturer of wind turbines, has also seen a decline in profit.

Source Credit: https://www.msn.com/en-ca/money/topstories/exclusive-ge-lays-off-workers-at-onshore-wind-unit-as-part-of-turnaround-strategy-sources/ar-AA12EdR3

About Author

Ayushi Garg     aeresearch.net

Ayushi Garg

Currently working as an associate content writer, Ayushi pens down insightful articles for several websites. She began her profession by taking classes in digital marketing to broaden her skills. Given her passion for writing, she took up several freelancing projects ...

Read More