GE to cut over 12,000 jobs
NEW YORK Embattled industrial giant General Electric announced it will cut more than 12,000 blue- and white-collar jobs in its GE Power unit, as part of a turnaround plan launched by the new company leadership.
The layoffs will primarily hit facilities outside the United States, as part of an effort to reduce structural costs by US$3.5 billion (S$4.7 billion) this year and next year, the company said.
"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," GE Power chief executive Russell Stokes said in a statement. Labour leaders in affected countries baulked at the announcement.
"GE's announcement that it wants to cut thousands of jobs in Europe serves no strategic purpose other than to maximise profits short-term for its shareholders," said Mr Klaus Stein, director of IG Metall, the metalworkers' union in Germany, where about 16 per cent of GE's workforce will be eliminated. - AFP