New GE Chief Delays Part of Boston HQ
August 09 2017 - 1:27PM
Dow Jones News
By Thomas Gryta
General Electric Co. has delayed the completion of its new
Boston headquarters in an effort to spread out the costs of the
$200 million project, as new CEO John Flannery looks to cut
spending.
GE is building a new headquarters on the Boston waterfront,
uprooting itself from more than 40 years in Fairfield, Conn., where
it sold its campus last year. It planned to renovate two existing
buildings and build a new office tower, all for completion in
2019.
The company said this week that it will continue the renovations
but delay the start of the new building, which now isn't expected
to be completed until 2021. News of the delay was earlier reported
by the Boston Globe.
GE will get an incentive package from Boston and Massachusetts
valued at as much as $145 million for moving 200 jobs and
ultimately having about 800 at the headquarters.
The timeline on the new tower is the only change to the latest
plans, GE said, and the company said it remains committed to
Boston. Company executives have already moved into temporary Boston
offices.
Mr. Flannery took the reins from GE's longtime leader Jeff
Immelt earlier this month and is conducting a review of the entire
company, including the headquarters project.
GE pledged to boost its cost-cutting program earlier this year
after discussions with activist investor Trian Fund Management LP,
which has been frustrated by missed profit goals at GE. GE has
eliminated $670 million in industrial spending this year and is on
track to meet or beat its full year $1 billion savings goal.
Write to Thomas Gryta at thomas.gryta@wsj.com
(END) Dow Jones Newswires
August 09, 2017 13:12 ET (17:12 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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