GE cutting 20% of US onshore wind workforce
As of the end of 2021, GE's Renewable Energy business had roughly 38,000 employees
General Electric is laying off 20% of its onshore wind workforce in the U.S. – part of its renewable energy business – resulting in hundreds of job cuts.
"We are taking steps to streamline and size our onshore wind business for market realities to position us for future success," a GE Renewable Energy spokesperson told FOX Business. "These are difficult decisions, which do not reflect on our employees’ dedication and hard work but are needed to ensure the business can compete and improve profitability over time."
The Invenergy Judith Gap wind farm in central Montana. (Photo by William Campbell/Corbis via Getty Images) | Getty Images
The spokesperson added that the company is also reviewing its onshore wind footprint in Europe and the Asia-Pacific region.
As of the end of 2021, GE's Renewable Energy business had roughly 38,000 employees.
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In the second quarter of 2022, GE reported total revenue of $18.6 billion. The Renewable Energy and Power segments posted total revenues of $3.099 billion and $4.202 billion for the quarter, down 23% and 2% year over year.
General Electric
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GE | GE AEROSPACE | 176.90 | -1.49 | -0.83% |
At the time, GE said that it no longer expected a step-up in Renewable Energy profit in the second half of 2022, citing "additional U.S. Onshore demand pressure, inflation and fleet durability actions."
However, it expressed confidence in the business' ability to drive profitability over time given its "strong portfolio and fundamental importance in the energy transition."
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The move comes as GE is in the process of splitting its business into three separate companies.
GE's health care unit will spin off in early January to form GE HealthCare, which will trade on the Nasdaq under the ticker symbol GEHC. Meanwhile, GE Renewable Energy, GE Power, GE Digital and GE Energy Financial Services will be spun off in early 2024 to form GE Vernova.
General Electric logo is seen through magnifier in front of displayed Aviation, Energy, Healthcare words in this illustration taken, November 9, 2021. Reuters/Dado Ruvic (Reuters/Dado Ruvic / Reuters Photos)
Following the tax-free spinoffs, GE will become an aviation-focused company called GE Aerospace, which will own the company's trademark and provide long-term licenses to the other companies.
GE shares have fallen approximately 31% year to date.