GE Power Announces Global Headcount Reduction of 12,000 Jobs As Part of Plan to Take Out $1 Billion in Structural Costs

Aligns with company’s effort to reduce overall structural cost by
$3.5 billion in 2017 and 2018

BOSTON–(BUSINESS WIRE)–GE Power (NYSE: GE) today announced that it plans to reduce its global
headcount by approximately 12,000 positions, affecting both professional
and production employees.

The headcount reductions, combined with actions taken previously in
2017, will position GE Power to reach its announced target of $1 billion
in structural cost reductions in 2018. This announcement aligns with
GE’s effort to reduce overall structural costs by $3.5 billion in 2017
and 2018. These actions will strengthen GE Power’s global
competitiveness and drive increased value for customers and shareholders.

The plans announced today are driven by challenges in the power market
worldwide. Traditional power markets including gas and coal have
softened. Volumes are down significantly in products and services driven
by overcapacity, lower utilization, fewer outages, an increase in steam
plant retirements, and overall growth in renewables.

GE Power is right-sizing the business for these realities and is focused
on improving operational excellence and reducing its footprint and
structure, which will help drive significant improvements in cash flows
and margins.

“This decision was painful but necessary for GE Power to respond to the
disruption in the power market, which is driving significantly lower
volumes in products and services,” said Russell Stokes, president and
CEO, GE Power. “Power will remain a work in progress in 2018. We expect
market challenges to continue, but this plan will position us for 2019
and beyond.

“At its core GE Power is a strong business,” Stokes continued. “We
generate more than 30 percent of the world’s electricity and have
equipped 90 percent of transmission utilities worldwide. Our backlog is
$99 billion and we have a substantial global installed base. This plan
will make us simpler and stronger so we can drive more value for our
customers and investors.”

Where required, the process of informing and/or consulting with employee
representatives regarding these proposals has begun or will begin
shortly.

About GE
GE (NYSE:GE) is the world’s Digital Industrial
Company, transforming industry with software-defined machines and
solutions that are connected, responsive and predictive. GE is organized
around a global exchange of knowledge, the "GE Store," through which
each business shares and accesses the same technology, markets,
structure and intellect. Each invention further fuels innovation and
application across our industrial sectors. With people, services,
technology and scale, GE delivers better outcomes for customers by
speaking the language of industry. www.ge.com

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Contacts

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