wiredInUSA January 2018

Power co streamlining

GE Power has announced plans to reduce its global workforce by approximately 12,000 positions, affecting both professional and production employees. The cuts, combined with actions taken previously in 2017, will help 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 to strengthen the company’s competitiveness, and drive increased value for customers and shareholders. GE said in a press release that the plans 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.

GE Power indicated it is focused on improving operational excellence and reducing its footprint and structure, which will help drive significant improvements in cash flows and margins. “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,” 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 has previously confirmed that power generation will remain a core business for the company, as will health care and aviation.

wiredInUSA - January 2018

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