GE cuts 12,000 positions

General Electric, whose new leadership is moving to eliminate bloat and grapple with the fallout from earlier, ill-timed decisions, is taking drastic steps to keep pace with seismic shifts in the global energy industry.

The company said Thursday that it would cut 12,000 jobs in its power division, reducing the size of the unit’s workforce by 18 percent as part of a push to compete with international rivals in a saturated natural gas market, adjust to “softening” in the oil and gas sectors and stay abreast of the growing demand for renewable energy.

Solar and wind energy technology is increasingly being deployed around the world, in large part because of lower production costs. Renewable energy sources are expected attract two-thirds of global investment in power plants until 2040 and account for as much as 40 percent of total power generation by then, according to the International Energy Agency.

In much of the world, more coal is being burned and shipped this year compared with 2016. Still, long-term trends favor renewable sources and natural gas in developed and developing countries. Over time, natural gas will probably be pushed from a primary role to a supporting, balancing one as alternative energy rises in prominence.

Amid the changes in production, demand for power is increasing at a slower pace as appliances and commercial buildings become more energy efficient.