GE is to lay off workers at its onshore wind unit as part of a plan to restructure and resize the business, as it tackles weak demand, rising costs and supply chain delays.
According to a Reuters news report, four sources confirmed the company has notified employees in North America, Latin America, the Middle East and Africa about the cuts.
GE also has plans to cut its onshore wind workforce at a later date in Europe and Asia Pacific, the report added.
The cuts are expected to affect 20% of the onshore wind unit’s workforce in the US, the Reuters story reported, equating to “hundreds of workers”.
A GE Renewable Energy source told reNEWS: “We are taking steps to streamline and size our onshore wind business for market realities to position us for future success.
“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.”
Onshore wind is the largest of GE’s renewable businesses, which employed 38,000 people worldwide at the end of 2021.
In the United States, which has been GE’s most profitable onshore wind market, policy uncertainty following the expiry of renewable electricity production tax credits last year has reduced customer demand, leading to a fall in the unit’s revenue this year.
The unit has been contending with industry-wide challenges that include higher raw material costs due to inflation and supply chain pressures.
Recently Siemens Gamesa announced that it is to cut 2900 jobs across its global workforce as part of “decisive and necessary actions” to turn the company around, equating to around 10% of the European turbine maker’s workforce.
In other recent news, GE Renewable Energy’s CEO, Jerome Pecresse, announced his departure from the company after eight years. The wind unit is a key part of GE Renewable Energy.