GE Power Announces Global Headcount Reduction of 12,000 Jobs As Part of Plan to Take Out $1 Billion in Structural Costs

Date : 12/07/2017 @ 5:32AM
Source : Business Wire
Stock : General Electric Company (GE)
Quote : 17.91  0.26 (1.47%) @ 6:02PM
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GE Power Announces Global Headcount Reduction of 12,000 Jobs As Part of Plan to Take Out $1 Billion in Structural Costs

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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.

About GEGE (NYSE:GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com

GE’s Investor Relations website at www.ge.com/investor and our corporate blog at www.gereports.com and @GE_Reports on Twitter, as well as GE’s Facebook page and Twitter accounts, contain a significant amount of information about GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted.

GEInvestors:Matt Cribbins, 617-443-3400Matthewg.Cribbins@ge.comMedia:Andrea Doane, +41 585069491Andrea.Doane@ge.comJennifer Erickson, 646-682-5620Jennifer.Erickson@ge.comKatie Jackson, 518-385-5976Katie.Jackson@ge.com

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