GE announces plans to split up into 3 separate companies

News

SCHENECTADY, N.Y. (NEWS10) — General Electric announced Wednesday that it will split into three separate companies.

General Electric’s CEO Larry Culp said the debt-reducing decision by the manufacturing giant will create companies focusing on aviation, health care and renewable energy and power. Each company will have its own CEO and its own board of directors.

GE says they will maintain control over the Aviation business only. However, the GE campus based in Schenectady focuses on renewables, gas and steam turbines, and generators. They already suffered recent layoffs, but it is too early to tell how things will play out now.

Carl Kennebrew, president of IUE-CWA, the largest union representing GE workers, said, “We are continuing to fight for our member’s jobs at GE and across the country and definitely right here in Schenectady. And GE could be the next hub for offshore wind production.”

General Electric has been focused on shedding massive debt by selling off parts of its global company for many years now. While splitting up a company may not be great for workers, Brown says it can benefit investors. “Today’s news is very good for investors, but there are questions about what this could mean for the current employees,” he said.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending

Trending Stories

Latest Coronavirus Headlines

More Coronavirus