General Electric, the commercial conglomerate, said on Thursday that it could trim 12,000 jobs in its power division worldwide, a bid to lessen costs as the business scales rear the sprawling ambitions that characterized it for decades.
The company said it was looking to improve its global competitiveness, and blamed a number of challenges facing the energy sector worldwide, including overcapacity, growth in renewable energy and the “softening” of traditional power markets.
“This decision was painful but essential for GE Power to react to the disruption in the energy market,” Russell Stokes, the head of the company’s power division, said in a statement. “We expect market problems to continue, but this plan will location us for 2019 and beyond.”
The announcement comes amid a wide-ranging shift at G.E. as its innovative leader, John Flannery, seeks to streamline a conglomerate with stakes in sectors which range from light bulbs to medical imaging products and jet engines.
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The job cuts in its power division would help G.E. save $1 billion, the business said, part of an overall effort across its businesses to lessen costs by $3.5 billion in 2017 and 2018.
Mr. Flannery just lately announced that the business would be shedding countless businesses in the approaching years, including some that reach back again to the days of its founder, Thomas Edison, like light bulbs and railroad locomotives.