General Electric Solar and Oerlikon Solar Scale Back

There has been plenty of worry about small, vulnerable startups since the recession began. But some of the biggest companies involved in renewable energy are feeling the pinch now, as well.

In Newark, Delaware, a General Electric unit focused on solar energy has just laid off 86 workers, according to Gunther Portfolio , a number that comes out to 43 percent of the workforce. GE confirmed the layoffs for Gunther, but he goes further, mentioning sources that claim the plant might be shut down altogether as GE flees the solar business.

Of course, GE Solar is composed of acquired startups the company picked up as it ventured into renewable energy. In 2004, it acquired AstroPower, later closing a plant in Glasgow, Delaware. It has also made some investments, like its taking a majority share in First Solar competitor PrimeStar Solar, that at best seem like long shots. By far, its stronger business is in wind.

Adding to the woes, though, is Oerlikon Solar. A division of Swiss industrial giant Oerlikon, it doesn't actually make solar cells. Instead, like Applied Materials, it makes equipment for manufacturing thin-film solar panels. Up until the recession, that business looked enormously promising.

While possibly not instituting layoffs in its solar division (another, optics, it's selling entirely) the company will institute other measures to cut costs. Those include putting 20 percent of the 3,800 employees on short-time work regimens, site closures and salary freezes, according to SwissInfo.