GE CUTS 12,000 POWER JOBS AS DE­MAND WANES

The Denver Post - - BUSINESS -

BOS­TON» Gen­eral Elec­tric Co. will cut 12,000 jobs in its power di­vi­sion as al­ter­na­tive en­ergy sup­plants de­mand for coal and other fos­sil fu­els.

The com­pany said Thurs­day that the cuts to both of­fice and pro­duc­tion jobs, will help “right­size” GE Power, as tra­di­tional power mar­kets, and the vol­ume of the fu­els that power them, de­cline.

The unit has been a drag on earn­ings for the strug­gling com­pany. GE’s stock has fallen 44 per­cent this year. That’s the worst per­for­mance of any mem­ber of the Dow Jones In­dus­trial Av­er­age.

The job cuts will mostly be out­side the U.S. and will com­prise ap­prox­i­mately 18 per­cent of the power unit’s work­force. GE would not say where work­ers would be ef­fected, but the power dis­tri­bu­tion net­work in Europe has seen sig­nif­i­cant dis­rup­tion as de­mand there wanes. Last month, in­dus­trial con­glom­er­ate Siemens an­nounced plans to cut about 6,900 jobs world­wide at its power, gas and drives di­vi­sions, half of them in Ger­many.

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