Thursday, December 7, 2017

USA: Demand Flagging for GE’s Power-Generation Equipment

GE to Cut 12,000 Jobs in Its Power Business (Bloomberg)

General Electric Co. plans to cut 12,000 jobs in its power business as the company’s new leaders look to slash costs and stabilize the beleaguered manufacturer.

The reductions, accounting for about 18 percent of GE Power’s workforce, include both professional and production employees, the company said Thursday in a statement. The world’s largest maker of gas turbines said the unit needs to become leaner as customers turn away from fossil fuel-based energy sources.

Demand is flagging for GE’s power-generation equipment because of overcapacity, lower utilization, fewer outages and the growth in renewable energy, said Stifel Financial Corp. analyst Robert McCarthy.


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