In a release, the company said it is aiming for $3.5 billion in cuts in 2017 and 2018.
“These actions will strengthen GE Power’s global competitiveness and drive increased value for customers and shareholders,” the company said.
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GE said “traditional” power markets, such as gas and coal, “have softened.”
“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,” Russell Stokes, president and chief executive of GE Power, said in the company’s statement. “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.”
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Business trends such as fewer power outages, an increase in steam plant retirements, and growth in renewables have affected business, the company said.
GE Aviation is a huge employer in Ohio and the Dayton area. Considered Ohio’s largest manufacturing employer, GE Aviation makes commercial and military jet engines and parts and has more than 9,000 employees in Southwest Ohio, including its plant in Evendale.
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The GE Aviation EPISCenter in Dayton researches electrical power in aviation uses. There are about 335 GE Aviation employees in Vandalia and about 1,600 total employees at three Dayton-area sites — including Unison Industries Dayton in Beavercreek and TDI-GE Aviation, also in Vandalia.
Worldwide, GE Aviation employs about 44,000 people at more than 80 locations.