ÂÌñÏ×ÆÞ

Photo Credit: Getty Images

As originally reported by Reuters,  (GE, Boston, Ma., U.S.) is laying off workers at its onshore wind unit as part of a plan to restructure and resize the business, which is grappling with weak demand, rising costs and supply chain delays. Sources said the company notified employees in North America, Latin America, the Middle-East and Africa in early October. GE is also said to have plans to cut its onshore wind workforce at a later date in Europe and the Asia Pacific. 

“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,” a GE Renewables spokesperson said in an emailed statement.

Featured Content

Development of a composite liquid hydrogen tank for commercial aircraft READ MORE

Automated Composites Knowledge Center READ MORE

Assembling the Multifunctional Fuselage Demonstrator: The final welds READ MORE

Onshore wind is the largest of GE’s renewable businesses, which together employed 38,000 people worldwide at the end of 2021. The unit, however, has been battling higher raw material costs due to inflation and supply chain pressures. In the U.S., which has been GE’s most profitable onshore wind market, policy uncertainty following the expiry of renewable electricity production tax credits last year has hit customer demand, leading to a fall in the unit’s revenue this year.

According to Reuters, troubles at GE’s onshore wind unit, which accounted for 15% of the company’s industrial sales last year, are also affecting the performance of its overall renewable energy business. In July, the company blamed its North American onshore wind business for two-thirds of the decline in its second quarter renewable revenue.

Overall, heightened competition, supply disruptions due to the COVID-19 pandemic and soaring metals prices exacerbated by the war in Ukraine have made it difficult for wind turbine makers to generate profits even as governments and companies are calling for more renewable energy in the face of climate change.  

GE has made turning around its onshore business a priority as it prepares to spin off its energy businesses, including renewables, into a separate company in 2024.

See the full announcement .