(Bloomberg) -- General Electric Co. is slashing jobs at its onshore wind turbine manufacturing business in a restructuring of its key renewable energy unit to counter mounting losses, according to a person familiar with the matter.
GE will reduce its US onshore wind workforce by 20%, equating to hundreds of staff, the person said, asking not to be identified because the plans were private. Cuts are also planned in Europe and Asia, the person said.
“We are taking steps to streamline and size our onshore wind business for market realities to position us for future success,” a GE spokesperson said in a statement, without discussing the scope of the cuts. “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.”
GE is racing to resize its onshore wind business -- the top revenue source in its renewable energy division -- to account for a steep drop in demand. Operating losses for the broader unit totaled $853 million in the first six months of the year.
Months of uncertainty surrounding a US tax credit designed to spur installations contributed to a slowdown in orders, while inflation and labor shortages added to the onshore wind unit’s struggles this year.
GE has previously said it plans to cut costs and prepare the business for lower wind turbine output than during peaks in 2021 and 2020.
Rivals are also struggling to turn a profit despite growing demand for clean energy. Siemens Gamesa Renewable Energy SA last week said it planned to eliminate 2,900 jobs following a run of losses.
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