Atlanta-based GE Power to cut 12,000 jobs worldwide


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

GE Power said the cuts will affect “both professional and production employees,” according to a news release. GE 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 announced plans to cut its 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.

MYAJC.COM: REAL JOURNALISM. REAL LOCAL IMPACT.

AJC Business reporter J. Scott Trubey keeps you updated on the latest news about economic development and commercial real estate in metro Atlanta and beyond. You'll find more on myAJC.com, including these stories:

Never miss a minute of what's happening in local business news. Subscribe to myAJC.com.



Reader Comments ...


Next Up in Business

Should you talk about your pay? Career experts weigh in
Should you talk about your pay? Career experts weigh in

Even with nearly every cultural taboo thrown to the wind− from discussing sexual orientation to politics; one last conversational taboo still exist among Americans − how much we get paid. "These days, it's okay to talk about the troubles we're having with our children or even our marriages," noted one blogger from PayScale...
BB&T recovering after 'technical issue' left customers without access to accounts, cash
BB&T recovering after 'technical issue' left customers without access to accounts, cash

Millions of BB&T customers were locked out of their accounts Thursday night and Friday morning due to an outage that bank officials said was caused by a "technical issue." The interruption of services was first reported Thursday night and appeared to last until just before noon Friday. “At this time, many of our services...
Krog Street Market developer plans redo of aging Atlanta hotel
Krog Street Market developer plans redo of aging Atlanta hotel

The developer of Atlanta’s Krog Street Market plans to convert an aging extended stay hotel in the Piedmont Heights neighborhood of the city into an eclectic boutique hotel. Atlanta-based Paces Properties said it has signed a deal with Texas hotelier Liz Lambert and her Austin-based hospitality company Bunkhouse to retrofit the...
UPS to add new electric delivery trucks to fleet
UPS to add new electric delivery trucks to fleet

UPS plans to deploy 50 electric delivery trucks as part of its fleet of brown vehicles, a move it expects could give a boost to adoption of electric vehicles across the industry. Sandy Springs-based UPS in its Thursday announcement said the trucks – which it is partnering with electric vehicle manufacturer Workhorse Group Inc....
Kempner: Big Delta squeezes Georgia and metro Atlanta’s poorest county
Kempner: Big Delta squeezes Georgia and metro Atlanta’s poorest county

Here’s what we should never forget about Delta: it is fabulously good for Georgia’s economy, and it never tires of squeezing fellow Georgians for more profits. Picture more than 500 local high school students showing up at the headquarters of mighty Delta Air Lines to protest. They were there — at the urging of Clayton County...
More Stories