General Electric Co. announced on Thursday that it is planning to slash 12,000 jobs in its power business unit.
The power business unit is the biggest for the company and had sales of $26.8 billion last year. The company had about 300,000 employees in total across all of its units in 2016.
Cutting 12,000 jobs will be about 18$ of the company’s Power’s workforce and according to GE, both professional and production employees are at risk of losing their jobs.
The company’s division chief Russell Stokes stated, “This decision was painful but necessary for GE Power to respond to the disruption in the power market. 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.”
The job cuts will help the company achieve its goal of cutting $1 billion of structural costs in 2018 in its power division.
The company’s CEO John Flannery who just recently took over the company this past August, has been trying to cut costs.
So far this year, GE shares have tumbled over 40%.
Disclaimer: We have no position in General Electric Company (NYSE: GE) and have not been compensated for this article.