General Electric to shed 12,000 jobs

GE buildingImage copyright

General Electric is to cut 12,000 jobs in its power business, 18% of the division’s global workforce.

The US industrial group expects the “painful but necessary” job losses to help save $1bn next year as demand for fossil fuel power plants wanes.

GE intends to cut 1,100 jobs from its UK power business, mainly in Stafford and Rugby.

Elsewhere, one-third of the firm’s Swiss workforce and one-sixth of German workers are likely to be hit.

“Traditional power markets including gas and coal have softened,” the company said.

In October, GE slashed its profits guidance after posting a 5% fall in third-quarter earnings to $1.8bn, due to weak trading in its power and oil and gas businesses.

‘Simpler and stronger’

“This decision was painful but necessary for GE Power to respond to the disruption in the power market, which is driving significantly lower volumes in products and services,” said Russell Stokes, president and chief executive of GE Power.

“This plan will make us simpler and stronger, so we can drive more value for our customers and investors.”

The boss of GE’s UK and Ireland operations, Mark Elborne, said the firm remained committed to the UK and would remain one of the country’s top five industrial companies.

He said: “These are not proposals we ever make lightly and we understand that this news will be difficult for many people.

“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.

“We have shared our proposals with employees’ representatives today and will now begin a consultation period before any final decisions are made.”

The move is part of a restructuring by new chief executive John Flannery, who took over in August from his veteran predecessor Jeff Immelt.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *