That’s left companies like GE Power with a glut of manufacturing capacity at a time of slower sales of its products.
The job reductions are part of GE Power’s previously announced plans to cut $1 billion in spending in 2018. The layoffs announced Thursday amount to about one-fifth of GE Power’s total headcount worldwide.
GE Power isn’t alone in cutting jobs. German rival Siemans announced plans last month to cut 6,900 jobs, largely in jobs related to turbine production.
“At its core, GE Power is a strong business,” Stokes said in the release. “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.”
Last month, GE officials announced plans to cut the company’s dividend by half as it cut costs and put its focus on three core segments — aviation, energy and health care. GE has cut a number of business lines and sold assets since the recession.