BOSTON (AP) — General Electric Co. will reduce 12, 000 jobs in its energy division as alternative energy supplants demand for coal and other non-renewable fuels.
The company said Thursday that the slashes to both office and manufacturing jobs, will help “right-size” GE Strength, as traditional power markets, as well as the volume of the fuels that strength them, decline.
The job cuts will be outside the U. S. and can comprise approximately 18 percent from the power unit’s workforce. GE may not say where workers would be affected, but the power distribution network within Europe has seen significant interruption as demand there wanes. Final month, industrial conglomerate Siemens introduced plans to cut about 6, nine hundred jobs worldwide at its energy, gas and drives divisions, 1 / 2 of them in Germany.
GE declared that reducing the number of positions, along with activities previously taken this year, will help GENERAL ELECTRIC Power trim costs by $1 billion in 2018. GE is certainly looking to reduce overall structural expenses by $3. 5 billion within 2017 and 2018.
“This choice was painful but necessary for GENERAL ELECTRIC Power to respond to the disruption within the power market, which is driving considerably lower volumes in products and services, inch Russell Stokes, CEO of GENERAL ELECTRIC Power, said in a prepared declaration.
GE announced in November it turned out slashing its dividend in half which the conglomerate would narrow the focus to three key areas – aviation, health care and power. The company has said it will shed property worth more than $20 billion within the next couple of years. It’s been paring businesses for more than a decade now.
GE’s stock went up slightly before the market open.