BOSTON (AP/WSPA) – General Electric Co. will cut 12,000 jobs in its power division as alternative energy supplants demand for coal and other fossil fuels.
The company said Thursday that the cuts to both office and production jobs, will help “right-size” GE Power, as traditional power markets, and volume of the fuels that power them, decline.
The company says reducing the number of positions will trim costs by $1 billion at GE Power in 2018.
Last month GE announced that it was slashing its dividend in half and that the conglomerate would narrow its focus to three key sectors – aviation, health care and energy. The company has said it will shed assets worth more than $20 billion in the next couple of years. It’s been paring businesses for over a decade now.
GE recently began lay-offs at its manufacturing plant in Greenville.
GE officials would not provide a number of local employees losing their jobs. A spokesperson said there are no new announcements impacting the Greenville plant as of Thursday.
In a news release about the global job cuts, GE President and CEO Russell Stokes said, “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.”
Stokes went on to say business remains “strong.”
“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,” Stokes said.