General Electric to relieve 12000 staff members of their jobs

General Electric to relieve 12000 staff members of their jobs

General Electric Co. will cut 12,000 jobs in its power division as alternative energy supplants demand for coal and other fossil fuels.

The company said Thursday that the cuts to both office and production jobs, will help "right-size" GE Power in a traditional power markets that is being upended globally.

New GE Chief Executive John Flannery last month outlined plans to shrink GE's sprawling empire of businesses built up by predecessors Jeff Immelt and Jack Welch, whose strategy was based on spreading risk across a broad range of industries.

Mark Elborne. President and CEO GE UK & Ireland said: "Regrettably, the proposed changes would have an impact on jobs in the UK". "It's one thing to put the tourniquet on, and it's another to redirect and create the path forward".

Annual EPS growth Past 5 years is -4.1 percent. While no facilities are expected to close in Switzerland, the company said the GE Power Conversion unit in Berlin and GE Grid Solutions in Moenchengladbach, Germany, would be closed.

During the same quarter last year, the company earned $1.30 earnings per share. research analysts anticipate that American Electric Power Company Inc will post 3.61 earnings per share for the current year.

In related news, Director Steven M. Mollenkopf acquired 5,500 shares of the company's stock in a transaction dated Thursday, November 16th.

GE plans to reduce overall structural costs by $3.5 billion in 2017 and 2018 and sell around $20 billion in assets.

"Unfortunately, we believe that these changes are necessary to ensure that we can remain competitive and secure the future of GE Power in the United Kingdom".


"We expect market challenges to continue, but this plan will position us for 2019 and beyond".

"Today's actions are driven by challenges in the power market worldwide".

At the end of 2016, GE had around 295,000 employees.

While GE didn't specify where the job cuts will come, the bulk will be outside the USA, according to a person familiar with the matter who asked not to be identified discussing the details.

Stokes goes on to say that GE Power is a strong company and that the GE layoffs will allow its structure to become more simple. The total would have been $36.8 billion after accounting for the effects of a reorganization this year in which GE added some energy businesses to the unit.

In Britain, around 1,100 position will be affected, the company said. Renewables will reap about two-thirds of $11.3 trillion in investment likely to flow to power plants over the period, the IEA said. Competitors such as Siemens AG are contending with similar pressures. Unfortunately, we believe that these changes are necessary to ensure that we can remain competitive and secure the future of GE Power in the UK.

The power unit expanded considerably with the $10 billion Alstom acquisition, but the drawn-out deal has turned into a drag. GE has a significant presence in wind turbines, but the market is spread among several companies.

Mr. Flannery, who took over in August, is focusing on GE's power, aviation and health-care divisions as he implements a sweeping turnaround effort at the 125-year-old conglomerate. GE also met with union representatives in Europe this week to discuss cutbacks there.

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