Posted on 12/07/2017 9:49:52 AM PST by Oshkalaboomboom
General Electric Co. announced Thursday that it will cut 12,000 jobs from power division amid a global softening of electricity demand and the switch from coal and other fossil fuels.
"The plans announced today are driven by challenges in the power market worldwide," the manufacturing giant said. "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."
The company said Thursday that the cuts will "right-size" GE Power amid the transition taking place in the power markets. The job cuts will save the company $1 billion, it said.
"This decision was painful but necessary for GE Power to respond to the disruption in the power market," said GE Power head Russell Stokes.
"Power will remain a work in progress in 2018," he said. "We expect market challenges to continue, but this plan will position us for 2019 and beyond."
Stokes added that at its core, GE Power remains "a strong business.” He said the company generates more than 30 percent of the world's electricity while providing the equipment to 90 percent of transmission utilities globally.
Where?............................
How does it get to the point at which you have to lay off 12,000 people at once? Seems like there ought to be a bit better planning.
I read 6000 in France, first I have heard about 12K.
Previous CEO was a jerk..
That’s the new Wicked Witch of the West that’s Plagued us forn8 years, and somehow still seems to plague US
Cuts in one area might be offset by hiring in another as technology changes, and demand for electricity does have its ups and downs as the economy grows and ebbs.
It is looking like demand will pick up globally next year though, with all of the 45 largest economies growing at the same time. I think that the big lag for electricity generation has been China, where growth has (relatively) slowed, and there is a lot of overcapacity already built.
On the other hand GE is well positioned for co-generation, fired by natural gas. So the coal on decline thing may be overstated. Plus 12,000 people makes it sound like all at once.
Yes, the past CEO lost focus on GE’s core strengths.
I've seen other companies call it "smart sizing". And companies don't offshore their jobs, they "best shore" them.
Which country is going to get their gas turbine business? Like the ones they use in combined cycle plants?
GE is going the way of government motors.
They want to be an investment firm that makes things on the side.
Their GETS division has gone completely to hell over the last year. Word is they’re looking to unload it, because the shareholders say it isn’t profitable enough.
GETS (GE tranportation systems) is the last domestic manufacturer of diesel electric locomotives in the US, and that’s using the term loosely.
At least 3/4 of the parts for their latest locomotives are sourced from china.
The reliability of their latest product is horrible.
GE, bending over on order from lucifer.
Immelt’s ‘retirement’ payoff has been estimated at something like $211 million. Not bad for screwing up.
It's never good news, but it may not be as bleak as the article paints.
Hmm. That maybe hints towards repatriation of $$$ to US to me.
From Chicago Tribune: The (12,000) job cuts will mostly be outside the U.S. and will comprise approximately 18 percent of the power unit's workforce. GE would not say where workers would be effected, but the power distribution network in Europe has seen significant disruption as demand there wanes.
Reason I asked is there is a GE Generator plant in Pensacola, FL, 40 miles from here....................
Largely credited to former CEO Jeff Imelt - was hated by Wall Street for a very long time.
The money saved was transferred to GE’s 5 mile square facility on mainland China where it will be producing military grade jet engines for the PLAAF and PLAN
Less demand?
So when do the electric rates go down?
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