GE Power Announces Global Headcount Reduction of 12,000 Jobs As Part of Plan to Take Out $1 Billion in Structural Costs
December 07 2017 - 6:32AM
Business Wire
Aligns with company’s effort to reduce overall
structural cost by $3.5 billion in 2017 and 2018
GE Power (NYSE: GE) today announced that it plans to reduce its
global headcount by approximately 12,000 positions, affecting both
professional and production employees.
The headcount reductions, combined with actions taken previously
in 2017, will position GE Power to reach its announced target of $1
billion in structural cost reductions in 2018. This announcement
aligns with GE’s effort to reduce overall structural costs by $3.5
billion in 2017 and 2018. These actions will strengthen GE Power’s
global competitiveness and drive increased value for customers and
shareholders.
The plans announced today are driven by challenges in the power
market worldwide. Traditional power markets including gas and coal
have softened. Volumes are down significantly in products and
services driven by overcapacity, lower utilization, fewer outages,
an increase in steam plant retirements, and overall growth in
renewables.
GE Power is right-sizing the business for these realities and is
focused on improving operational excellence and reducing its
footprint and structure, which will help drive significant
improvements in cash flows and margins.
“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 CEO, GE Power. “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.
“At its core GE Power is a strong business,” Stokes continued.
“We generate more than 30 percent of the world’s electricity and
have equipped 90 percent of transmission utilities worldwide. Our
backlog is $99 billion and we have a substantial global installed
base. This plan will make us simpler and stronger so we can drive
more value for our customers and investors.”
Where required, the process of informing and/or consulting with
employee representatives regarding these proposals has begun or
will begin shortly.
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