Bringing old things to death

7 December 2017 By Lauren Silva Laughlin Follow @TheRealLSL

The conglomerate is laying off 12,000 people in a power division that lights up 30 percent of the world. It blamed overcapacity amid a shift from coal and gas to renewables. Other divisions closely tied to fossil fuels are also ailing. GE’s woes suggest a wider shakeout ahead.

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General Electric’s Power division said on Dec. 7 it would cut 12,000 jobs around the world. The moves, combined with earlier cutbacks, will reduce annual expenses by $1 billion, it said.

The company said it was “right-sizing the business” in the face of overcapacity in electricity generation, lower plant utilization rates and outages, and growth in renewables.

“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 chief executive of GE Power.

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