General Electric to slash 1,000 jobs including in India
What's the story
General Electric (GE) is preparing to cut 1,000 jobs within its renewable energy subsidiary, LM Wind Power.
The information was revealed through an internal memo viewed by Moneycontrol.
The job reductions will span across various roles and locations, potentially impacting the company's Indian workforce.
These layoffs are expected to commence in the coming weeks as GE grapples with profitability issues in a competitive renewable energy market.
Streamlining efforts
Downsizing discussions initiated in January
The initial talks about downsizing began in January, as revealed by Olivier Fontan, CEO of GE Renewable Energy's LM Wind Power division.
In an email to employees on January 22, Fontan stated that due to market challenges, it was essential for the company to adapt its structure and reduce the size of the division within GE Vernova to regain competitiveness.
Business strategy
LM Wind Power's shift in focus
GE bought Denmark-based LM Wind Power for $1.65 billion in 2017, a firm that primarily makes rotor blades for wind turbines.
As part of GE Vernova, which includes power, electrification and acceleration divisions, the company is committed to decarbonization through renewable energy sources.
To enhance efficiency, LM Wind Power will now focus solely on external customers.
Indian operations
LM Wind Power's presence in India
LM Wind Power operates globally, with facilities in several countries including Denmark, Canada, China, Spain, Poland, India, Brazil, and the United States.
The company began its Indian operations in 2007 and currently employs over 200 engineers here.
It also operates two blade factories in the country, making India a significant market for the company.