GE Vernova plans 'leaner' offshore wind unit, will cut hundreds of jobs
Adds details from announcement, background
Sept 19 (Reuters) - Energy equipment maker GEVernova GEV.N said on Thursday it planned to slash the size of its struggling offshorewind business, a move that could cut 900 jobs around the world.
The company blamed cost inflation and supply chain challenges that have been a drag on the sector over the last year.
"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 an emailed statement.
But the company has also suffered delays to two major projects it is supplying because of incidents involving its turbine blades.
In July, a manufacturing flaw led to a turbine blade failure at the Vineyard Wind project off the coast of Massachusetts, and that facility has not yet returned to full construction.
The company also experienced two separate turbine blade failures at the Dogger Bank project in the United Kingdom this year.
Last week, company CEO Scott Strazik said its wind segment would lose $300 million this quarter as it seeks to complete a $3 billion order backlog.
GE Vernova said it would allocate resources to existing projects, including quality control. It did not say where the 900 jobs would be cut.
Reporting by Nichola Groom; Editing by Jacqueline Wong and Diane Craft
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