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General Electric (GE) Slashes Onshore Wind Unit Workforce

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General Electric (GE - Free Report) is restructuring its onshore wind unit, laying off hundreds of workers in North America, Latin America, the Middle East and Africa, Reuters recently reported.

The move comes as the onshore wind unit grapples with weak demand, raw material cost inflation and delays caused by supply chain disruptions. The Reuters report stated that GE later plans to slash its onshore wind workforce in Europe and the Asia Pacific.

The job cuts equate to about 20% of the onshore wind unit's workforce in the United States, per the report.

General Electric told Reuters that it was "streamlining" its onshore wind business to cope with market realities but did not explicitly mention workforce cuts. In an emailed statement, a GE Renewables spokesperson said, "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."

Within GE’s Renewable Energy segment, the Onshore Wind unit is the largest. The unit has been battling lower customer demand due to policy uncertainty following the expiration of renewable electricity production tax credits last year.

Lower U.S. onshore volumes and continued pressure from onshore North American market dynamics are weighing on orders in the Renewable Energy segment. Revenues in the segment fell 18% in the first half of 2022.

General Electric’s focus on streamlining its onshore wind unit is prudent as the company plans to spin-off its Renewables and Power business, including GE Digital, into a separate entity (to be named GE Vernova) in early 2024.

Zacks Rank & Key Picks

General Electric currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks within the Conglomerates sector are as follows:

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Carlisle has an estimated earnings growth rate of 114.4% for the current year. Shares of CSL have rallied 20.3% so far this year.

Icahn Enterprises (IEP - Free Report) presently carries a Zacks Rank #2. The Zacks Consensus Estimate for IEP’s 2022 earnings has been revised upward by more than 100% in the past 90 days.

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