General Electric
is laying off 20 percent of its U.S. onshore wind workforce, which equates to hundreds of jobs, according to a person familiar with the matter who declined to be named.
A note was sent out to employees yesterday.
https://www.cnbc.com/2022/10/06/ge-layoff-20percent-of-onshore-wind-workforce-hundreds-of-jobs.htmlGE is said to be examining its onshore wind footprint in Europe and Asia as well.
GE’s restructuring comes as its renewable energy business faces a trifecta of challenges: Rising input costs, supply chain issues, and competition from the likes of Siemens
. While demand for clean energy options is rising as energy shortages continue wreak havoc, analysts say making it’s been difficult to make wind energy a cost effective option. The recently passed Inflation Reduction Act does restore a tax credit for onshore wind, but some experts worry it came too late.
According to analysis from Melius Research, GE’s renewables segment is going to generate between $15 billion and $16 billion in revenue this year, and onshore wind will make up the vast majority, roughly 70%.
Jake Levinson, Director at Melius research says there is pressure to get the renewables business in a better place before it makes the split. “Shareholder interest in a money-losing or marginally profitable business would likely be very low, even in a “hot” space like renewables,” added Levinson.
Meanwhile, General Electric is in the process of splitting into three publicly traded companies – health care, aerospace, and energy.
