Company General Electric said Thursday that it is reducing 12,000 jobs as part of a major austerity programme. In 2017, the company’s stock price fell by 44%, what was the reason for starting the program, which should save you a GE up to $ 1 billion in 2018. The company says that the reduction is also substantiated by experts, claiming that the demand for power stations operating on fossil fuels, in subsequent years, only reduced.
The company did not give explanations about what exactly employees will affect the reduction, but we know that 12,000 people – 4% of the total population of the state. In General Electric reported only about the fact that will reduce mainly the employees of the company abroad — in Switzerland, Germany, UK.
«This decision was difficult but necessary for GE Power, which was to respond to the slump in the electricity market that caused significant decline in sales of products and services», — transfers words of Russell Stokes, head of GE Power, Reuters.
The company says they do not intend to stop working, and cost reduction will allow to save money and feel more confident in the market in the future.
