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GE to cut 12,000 power jobs globally

Xinhua | Updated: 2017-12-09 08:15
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NEW YORK — General Electric said Thursday it plans to reduce its global headcount by approximately 12,000 jobs at its global power business as part of the industrial conglomerate's efforts to reduce overall structural cost.

The company aims to reduce $1 billion in structural cost reduction in 2018. The announced headcount reduction, combined with actions taken previously in 2017, will allow GE Power to reach the target, according to a statement.

The decision aligns with GE's plan to reduce overall structural costs by $3.5 billion in 2017 and 2018.

"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 CEO of GE Power.

The company said it had begun talks with employee representatives about the steps.

GE rival Siemens is cutting about 6,900 jobs, or close to 2 percent of its global workforce, mainly at its power and gas division, which has been hit by the rapid growth of renewables, according to media reports.

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