A third of the company’s Swiss workforce face layoffs, while 16% of its staff in Germany are also likely to be axed in the shake up
Reuters | Zurich Last Updated at December 7, 2017 17:47 IST
The US company launched the cuts to save $1 billion in 2018, saying it expected current difficulties in the sector to continue.
“Traditional power markets including gas and coal have softened,” GE 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,” said Russell Stokes, head of GE Power.
“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.”
GE said it had begun talks with labour leaders about the steps.
Demand for new thermal power plants dramatically dropped in all rich countries, GE said, while traditional utility customers have reduced their investments due to market deterioration and uncertainty about future climate policy measures.
GE rival Siemens is cutting about 6,900 jobs, or close to 2 per cent of its global workforce, mainly at its power and gas division, which has been hit by the rapid growth of renewables.
First Published: Thu, December 07 2017. 17:47 IST