Europe 1 with AFP 6:30 p.m., October 18, 2022

An unpleasant breeze is blowing at General Electric.

Faced with the poor results of the renewable energy branch, the American conglomerate presented on Tuesday a plan to restructure its activity in onshore wind power in Europe.

About 570 positions are expected to be cut on the continent. 

The American conglomerate General Electric (GE) presented on Tuesday a plan to restructure its activity in onshore wind power in Europe, which could eliminate “around 570 positions”, according to a letter sent to employees by the management of the Onshore Wind unit. .

This plan, justified in particular by losses suffered since 2021, was presented to the European employee representative bodies.

“These proposals could potentially affect around 570 positions in all functions and in several countries in Europe”, announces in this letter GE, present in this sector especially in Germany as well as in France and Spain. 

"Volatility and Significant Challenges"

"Over the past few years, GE's onshore wind business in Europe has faced significant volatility and challenges," said the group in its letter signed by Vic Abate and Sheri Hickock, bosses of Onshore Wind, the branch dedicated to onshore wind power.

“Our European business recorded significant losses in 2021 and continues to be unprofitable in 2022,” they add, saying the “business outlook remains challenging” and that “the current approach in Europe (was not ) not sustainable".

This restructuring only concerns the onshore wind branch of GE, while the offshore branch (marine) is doing quite well.

The renewable not at the party

"Announced two weeks ago", this plan "aims to rationalize the activity according to the realities of the market", reacted a spokesperson for GE contacted by AFP.

It "does not reflect the dedication and hard work of our employees in the region," he said.

The American conglomerate, active in the aviation, health and energy sectors, did better in the second quarter of 2022 than Wall Street had expected, with a turnover of 18.6 billion euros. dollars (+2% compared to the second quarter of 2021) and a profit of 1.7 billion dollars (+45%).

In the second quarter, the group benefited from the good health of its activities in aeronautics - an industry for which it manufactures and supplies aircraft engines -, but its sales for renewable energies fell by 23%, to $3.1 billion.

In total, GE's renewable energy activities employ 38,000 people worldwide.