General Electric is to cut 12,000 jobs in its power business, 18% of the division’s global workforce.
The us industrial group, expects a “painful but necessary” for the loss of jobs to help save 1 billion dollars next year, because the demand for fossil-fuel plants decreases.
GE intends to cut 1,100 jobs from its UK power business, mainly in Stafford and Rugby.
Moreover, one-third of the Swiss society of workforce and a sixth of German workers are likely to be hit.
Company of 1, 100 job cuts are ‘hit’
The reduction in employment is part of a restructuring by the new GE chief executive officer John Flannery, who took over in August from his veteran predecessor, Jeff Immelt.
“Traditional energy markets, including gas and coal-have eased,” the company said.
In October, GE reduced its earnings guidance after the publication of decline of 5% in the third quarter, revenues of $1.8 billion euros because of the weakness of the negotiation that is in his power, oil and gas companies.
GE Power is the company’s largest industrial company, employing more than 55,000 people in the world.
It makes turbines, generators and other types of factory equipment.
The germany of the european union have denounced the cuts and said they were going to fight to preserve the jobs.
Klaus Stein, the representative of the IG Metall union at GE in the factory in Mannheim, said the announcement was “neither a strategic nor economically justifiable” and has served to maximize the short-term profit for the shareholders.”Simpler and stronger”
Russell Stokes, president and chief executive officer of GE Power, said: “This decision has been painful, but necessary for GE Power in response to the disruption of the electricity market, which is driven by significantly lower volumes in the products and services.
“This plan will make us more simple and more strong, so that we can increase the value for our customers and our investors.”
The boss of GE UK and Ireland, the operations, the Mark Elborne, said the firm remained committed to the united KINGDOM and remains one of the countries among the five leading industrial companies.
He said: “these are not proposals that we have never taken lightly and we understand that this news is going to be difficult for many people.
“Unfortunately, we believe that these changes are necessary to allow us to remain competitive and secure the future of GE Power in the united KINGDOM.
“We have shared our proposals with the representatives of the employees today and will now begin a period of consultation before making a final decision.”