Betting Wrong: GE Takes Big Loss as Fossils Lose to Renewables

December 9, 2017

Snooze you lose.

Renewables are the future. GE the latest to miss the trend.

Don’t be too hard on them – they’re not alone.  We are seeing a “disruption of unprecedented scope and speed,”

Reuters:

ZURICH/LAS VEGAS (Reuters) – General Electric Co (GE.N) said Thursday it is axing 12,000 jobs at its global power business, the struggling industrial conglomerate’s latest effort to shrink itself into a more focused company.

The U.S. company launched the cuts to save $1 billion in 2018 at its Power business, saying it expects dwindling demand for fossil fuel power plants to continue. GE’s cuts follow a decision by rival Siemens AG to slash 6,900 jobs in the face of a global shift by electric utilities away from fossil fuels to renewable sources of energy such as wind and solar.

GE did not give a breakdown of the job cuts, which represent about 4 percent of its overall workforce of 295,000, saying only that they would be primarily outside the United States. The cuts represent about 18 percent of GE’s Power business, GE said.

The announcement cast a spotlight on GE’s decision to spend 9.7 billion euros ($10.7 billion when the deal closed in 2015) on the energy business of France’s Alstom (ALSO.PA). The deal rounded out GE Power’s portfolio by adding steam and nuclear capabilities to its mainly natural gas turbine power business.

But the purchase came just as demand for new power plants was slowing, in part due to competition from wind and solar systems.

“Traditional power markets including gas and coal have softened,” GE said on Thursday, explaining the decision for the job cuts.

Even Fox News noticed..

I posted on similar losses at European energy giant Siemens a few weeks ago.

siemens

Reuters:

FRANKFURT (Reuters) – Siemens (SIEGn.DE) will cut about 6,900 jobs, or close to 2 percent of its global workforce, mainly at its power and gas division, which has been hit by the rapid growth of renewables.

Most of the cuts, about 6,100, will be made before 2020 at Siemens’s Power and Gas division, which once thrived on supplying large gas turbines for electricity generation but has been overtaken by the global surge in solar and wind capacity.

“The power generation industry is experiencing disruption of unprecedented scope and speed,” Siemens management board member Lisa Davis said. “With their innovative strength and rapidly expanding generation capacity, renewables are putting other forms of power generation under increasing pressure,” she added.

Advertisements

5 Responses to “Betting Wrong: GE Takes Big Loss as Fossils Lose to Renewables”


  1. Sorry for the workers who will lose their jobs but zero sorries for GE itself.

  2. rhymeswithgoalie Says:

    GE probably gave too much credit to the IEA’s consistently wrong projections of renewable energy uptake.

  3. rhymeswithgoalie Says:

    In other news, one of the managers responsible for the VolksWagen diesel emissions scam has been sentenced to prison for it. Prosecutors are still looking at potential prosecutions further up the management chain.


  4. Reblogged this on The Most Revolutionary Act and commented:
    *
    *
    GE cutting 12,000 jobs.


Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

%d bloggers like this: