GE Vernova has announced significant staff reductions in its offshore wind business following a series of operational setbacks and financial losses. The company stated that 900 employees globally could be affected by the move, citing rising material costs and persistent supply chain disruptions as key reasons behind the decision.
“The proposal reflects industry wide challenges for wind and aims to transform our offshore wind business into a smaller, leaner and more profitable business within GE Vernova,” a company spokesperson said in a statement.
This downsizing comes as GE Vernova’s offshore wind division faces mounting challenges, including a $300 million projected loss for the current quarter. The company’s CEO Scott Strazik revealed that it is currently struggling to complete an order backlog worth $3 billion.
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The decision follows a year marked by technical issues with GE Vernova’s offshore wind projects. Over the summer, turbine blades at wind farms off the coasts of Martha’s Vineyard, Massachusetts, and the United Kingdom experienced failures, with blades breaking and debris falling into the ocean. These incidents came after a similar blade failure at the same U.K. wind farm earlier in May.
Amid these new staffing cutbacks, GE Vernova stated that it will prioritize allocating its resources towards existing projects, including quality control operations.
Jack Aylmer
AFTER SEEING ITS OFFSHORE WIND TURBINES EXPIERNCE FAILURES BOTH IN THE U.S. AND ABROAD THIS YEAR-
GE VERNOVA HAS ANNOUNCED SOME SIZEABLE STAFF CUTS.
THE COMPANY SAYING THIS WEEK IT’S GOING TO SLASH THE SIZE OF THEIR OFFSHORE WIND BUSINESS-
A MOVE THAT COULD MEAN ALMOST A THOUSAND PEOPLE AROUND THE WORLD WILL BE LAID OFF.
BLAMING THE CUT ON MATERIAL COST INFLATION AND SUPPLY CHAIN CHALLENGES.
GE VERNOVA’S CEO SAID ITS WIND SEGMENT IS ON TRACK TO LOSE THREE HUNDRED MILLION DOLLARS THIS QUARTER ALONE-
AS IT STRUGGLES TO COMPLETE A THREE BILLION DOLLAR ORDER BACKLOG.
OVER THE SUMMER, GE VERNOVA WIND TURBINE BLADES BROKE OFF AND DUMPED DEBRIS INTO THE SURROUNDING OCEAN OFF THE COASTS OF BOTH MARTHA’S VINEYARD, MASSACHUSETTS AND THE UNITED KINGDOM.
THESE INCIDENTS COMING AFTER A PREVIOUS ACCIDENT WHERE ONE OF THE COMPANY’S BLADES FAILED AT THE SAME U.K. OFFSHORE WIND FARM IN MAY.
GE VERNOVA SAYS IT WILL ALLOCATE RESOURCES TOWARD EXISTING PROJECTS-
INCLUDING QUALITY CONTROL OPERATIONS.
FOR MORE ABOUT PROBLEMS FACING THE OFFSHORE WIND INDUSTRY DOWNLOAD THE STRAIGHT ARROW NEWS APP AND SIGN UP FOR ALERTS FROM ME – JACK AYLMER.
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