breaking news

Chrissy Teigen offers to pay McKayla Maroney's possible $100K fine to speak out about team doctor

GE Power to cut 12,000 jobs globally


Officials with the Atlanta-based power division of General Electric said Thursday that the company is cutting its global workforce by 12,000 jobs as part of corporate restructuring by the industrial giant and amid weak demand for coal and gas turbines.

>> Read more trending news

GE Power officials said the cuts will affect “both professional and production employees,” according to a news release. GE officials announced plans to cut $3.5 billion this year and next year as part of a broader effort across the conglomerate to improve its financial performance.

It’s unclear how many job cuts might take place in metro Atlanta. The job cuts at GE Power are expected to be largely outside the U.S.

“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,” Russell Stokes, GE Power president and CEO, said in the release. “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.”

GE Power makes turbines for power plants fueled by gas and coal. GE Power and its rivals have suffered from oversupply of inventory as power grids worldwide have become more efficient and as more utilities shift to renewable sources of power.

That’s left companies like GE Power with a glut of manufacturing capacity at a time of slower sales of its products.

The job reductions are part of GE Power’s previously announced plans to cut $1 billion in spending in 2018. The layoffs announced Thursday amount to about one-fifth of GE Power’s total headcount worldwide.

GE Power isn’t alone in cutting jobs. German rival Siemans announced plans last month to cut 6,900 jobs, largely in jobs related to turbine production.

“At its core, GE Power is a strong business,” Stokes said in the release. “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.”

Last month, GE officials announced plans to cut the company’s dividend by half as it cut costs and put its focus on three core segments — aviation, energy and health care. GE has cut a number of business lines and sold assets since the recession.


Reader Comments ...


Next Up in Nation World

Kroger to roll out digital aisle displays that connect to smartphones
Kroger to roll out digital aisle displays that connect to smartphones

Kroger is changing how customers will shop in stores with new digital aisle displays that connect and interact with smartphones. The Cincinnati-based grocery retailer is rolling out new technology called Kroger Edge in nearly 200 stores in 2018. The technology will be installed on store shelves where paper price tags currently hang, Kroger told Business...
Eagles guitarist Glenn Frey's widow files wrongful death lawsuit against New York hospital
Eagles guitarist Glenn Frey's widow files wrongful death lawsuit against New York hospital

The widow of late Eagles guitarist Glenn Frey is suing the New York City hospital that treated her husband before his death in 2016. According to Reuters, Cindy Frey filed a lawsuit Tuesday accusing Mount Sinai Hospital and gastroenterologist Steven Itzkowitz of negligence while treating the musician, who had ulcerative colitis, in late 2015. >>...
Cottrel: Hawaii scare a reminder to be prepared, even in Ohio
Cottrel: Hawaii scare a reminder to be prepared, even in Ohio

Poor Hawaii. It’s hard to imagine that here I am in the snow and ice, and I am feeling sorry for the people of Hawaii. Really I am. Last Saturday morning island residents and visitors had a rude awakening when a statewide alert was erroneously sent out. They were told that missiles were on their way and that it was not a drill. Yikes. MORE BY...
PHOTOS: Why you need to hike Clifton Gorge right NOW
PHOTOS: Why you need to hike Clifton Gorge right NOW

After a blustery day of hiking at Clifton Gorge State Nature Preserve, our jaws were more tired from dropping in awe than our legs were tired from the trek.  Clifton Gorge is a 268-acre preserve in Yellow Springs, protecting “one of the most spectacular dolomite and limestone gorges in the state,” according to the Ohio ...
Chrissy Teigen offers to pay McKayla Maroney's possible $100K fine to speak out about team doctor
Chrissy Teigen offers to pay McKayla Maroney's possible $100K fine to speak out about team doctor

One after one, gymnasts and other victims of former USA Gymnastics team doctor Larry Nassar, 54, stepped forward in a Michigan courtroom Tuesday to recount the sexual abuse and emotional trauma they say he inflicted on them as children. U.S. Olympians Simone Biles, Aly Raisman and Gabby Douglas are among the many women to accuse Nassar of...
More Stories