GE Vernova Inc. (NYSE:GEV) may cut about 900 jobs globally as it moves to shrink its offshore wind business.
In a proposal to a group that represents European employees, GE Vernova intended to transform its offshore business globally into a smaller, leaner and more profitable business, according to a company representative late Thursday.
The offshore-wind industry has grappled with inflation and supply chain disruptions, which have prompted project delays and cancellations. Multiple companies have taken billions of dollars in combined writedowns on US projects in the past year, and the prospect of Donald Trump, an avowed critic of wind power, winning the presidency has cast a shadow over the industry.
GE Vernova has also faced high-profile struggles with projects in recent months, including a blade failure at an offshore wind project in the UK and a blade that washed onto Nantucket shores, shutting beaches on the wealthy Massachusetts enclave.
Shares have continually climbed since the company completed its spinoff from GE in April, however, with analysts focusing on growth in the company’s gas turbine and electrification business. Shares were up as much as 2.6% on Friday morning in New York.
GE Vernova is in a great position thanks to the overall boom in electricity demand tied to artificial intelligence and electric vehicles, said Pavel Molchanov, an analyst at Raymond James.
“Vernova, to state the obvious, is part of the boom in what we might call picks and shovels for the entire electric power industry,” he said. And since its wind business is losing money, it makes sense for the new company to seek savings there, he added.
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