General Electric is laying off 20% of its onshore wind workforce as part of its renewable energy business, which has resulted in hundreds of job cuts.
A GE Renewable Energy spokeswoman told FOX Business that they were taking steps to streamline and size their onshore wind business for market realities. These difficult decisions do not reflect the dedication and hard work of our employees, but are needed to make sure the business can compete and improve profitability over time. The company is looking at its onshore wind footprint in Europe and the Asia-Pacific region, according to a spokesman.
The Renewable Energy business at the end of 2021 had more than 38,000 employees.
Total revenue for the second quarter of 2022 was $18.6 billion. 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.
At the time, GE said it no longer expected a step-up in Renewable Energy profit in the second half of 2022, citing additional U.S. onshore demand, inflation and fleet durability actions. It expressed confidence in the business's ability to drive profitability over time, given its strong portfolio and fundamental importance in the energy transition. The move comes as GE is about to split its business into three separate companies.
GE HealthCare will be merged with GE HealthCare in early January, which will trade on the Nasdaq under the ticker symbol GEHC. GE Renewable Energy, GE Power, GE Digital and GE Energy Financial Services will be spun off in early 2024 to form GE Verona.
After the tax-free spinoffs, GE will become an entity that will own the company's trademark and provide long-term licenses to the other companies.