BOSTON, Massachusetts: General Electric has announced that it will lay-off workers at its wind power generation unit, which manufactures wind generating equipment.
GE said the lay-offs are part of the restructuring of the company, due to falling demand.
This week, GE notified its employees in North America, Latin America, the Middle-East and Africa about the staff reductions, and it plans to cut its onshore wind workforce in Europe and Asia Pacific.
Some 20 percent of the company’s onshore wind unit’s workforce in the U.S., numbering hundreds of workers, are expected to be part of the planned lay-offs.
GE told Reuters that in response to market realities, it was “streamlining” its onshore wind business, but it did not comment directly on the reported lay-offs.
“These are difficult decisions, which do not reflect on our employees’ dedication and hard work, but are needed to ensure that the business can compete and improve profitability over time,” a GE Renewables spokesperson said in an emailed statement.
Onshore wind is GE’s largest renewable business, employing 38,000 people throughout the world as of the end of 2021.
In GE’s most profitable onshore wind market, the U.S., policy uncertainties after the expiraton of renewable electricity production tax credits last year affected customer demand, leading to a decline in the unit’s revenues this year.
Fierce competition, supply disruptions caused by the COVID-19 pandemic, surging metals prices and Russia’s invasion of Ukraine have also affected the profits of other wind turbine manufacturers.
Last month, GM’s rival, Siemens Gamesa, announced a plan to cut 2,900 jobs, mostly in Europe while the profits of Danish wind turbine maker Vestas also declined.
Amidst its plan to spin off its energy businesses, including renewables, into a separate company in 2024, GE has prioritized turning around its onshore business.
