General Electric to cut 12,000 jobs
Industrial giant General Electric will be shedding more than 12,000 jobs in its power division – nearly a fifth of the entire power unit, and almost 4% of its global workforce.
Half of the cuts are expected to be in Britain, Switzerland, Germany, and other facilities outside the US.
The move is part of a US$1 billion cost cutting plan within the power unit – as well as a company-wide US$3.5 billion (S$4.7 billion) plan to slash “structural costs”, as laid out by new GE CEO John Flannery, who took over from Jeffrey Immelt in August last year.
"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 GE Power chief executive Russell Stokes.
“Power will remain a work in progress in 2018. We expect market challenges to continue, but this plan will position us for 2019 and beyond,” he added.
GE shares have fallen by almost half this year, while the power industry overall has struggled in the face of renewables – rival Siemens recently announced it would be cutting almost 7,000 jobs in its power and gas division.