General Electric (GE) has plans to lay off 20% of its onshore wind workforce in the U.S., according to reports. This would mean hundreds of lost jobs. The company is expected to also evaluate the situation in its Europe and Asia wind markets.
Employees in the company received a note this Wednesday stating, “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,” according to a GE spokesperson.
Several challenges have hindered GE’s green energy operations including, increasing input costs, supply chain disruptions, and competition from other major energy firms. While wind energy is vital for the decarbonisation of the energy sector and the shift to green, it remains difficult to keep operations cost-effective. Hopes lie with the recent Inflation Reduction Act that offers tax credits across a range of renewable energy projects.
GE is currently undergoing a transition to divide into three publicly traded companies that will focus on health care, aerospace, and energy. The firm has been going from strength to strength, with stocks rising by around 55% since the beginning of the year. Lawrence Culp, CEO of GE, believes that splitting the company into three different areas will allow for greater expertise and growth in each sector.