GE Power Plans 12K Headcount
December 7, 2017
GE Power 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.
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.
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.
“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.