GE’s Immelt to step down

General Electric said Monday that its longtime chairman and chief executive, Jeffrey Immelt, will retire, ending a 16year run in which he refocused the company on its industrial roots but also made notable acquisitions.

Immelt will be replaced by John Flannery, president and chief executive of GE Healthcare, in a shift that comes as the conglomerate struggles to increase profitability. GE has been under particular pressure since Trian Fund Management, run by billionaire investor Nelson Peltz, took a big stake in it nearly two years ago.

The shift could augur bigger changes at the conglomerate, with Flannery saying in a video broadcast on Facebook that he would “take a fresh look at the company” with a “sense of urgency” before presenting recommendations this year.

He said that while “no one’s happy with the stock price now,” the health care sector in particular offered “so much long-term growth,” adding that GE was “just scratching the surface of what we can do in that business.”

Flannery, 55, will become chief executive Aug. 1. Immelt, 61, will remain as chairman until he retires Dec. 31. Flannery will then add the role of chairman.

“During this time of dynamic global markets and relentless focus on technology and operational excellence, there is no better person to lead GE than John Flannery,” Jack Brennan, the company’s lead independent director, said in a news release. “He brings unique experience and a strong skill set to the job.”