General Electric says it is splitting its Schenectady, New York-based power unit into two entities. One will be a unified gas business combining GE’s gas product and services groups. The other will include GE Power’s other assets, including Steam, Grid Solutions, Nuclear, and Power Conversion.
The company says it also plans to consolidate the structure of GE Power’s headquarters. In announcing third quarter results Tuesday, new chairman and CEO H. Lawrence Culp Jr. said the company recorded a non-cash goodwill impairment charge of $22 billion, before tax, related to GE Power. Culp took over this month for John Flannery, who became GE CEO last year.
“After my first few weeks on the job, it’s clear to me that GE is a fundamentally strong company with a talented team and great technology," Culp said in a statement Tuesday. "However, our results are far from our full potential. We will heighten our sense of urgency and increase accountability across the organization to deliver better results. We are on the right path to create a more focused portfolio and strengthen our balance sheet. My priorities in my first 100 days are positioning our businesses to win, starting with Power, and accelerating deleveraging. We are moving with speed to improve our financial position, starting with the actions announced today. I look forward to updating you further on our progress in early 2019.”
It’s unclear how the split might impact the roughly 4,000 GE employees in Schenectady.
In August, GE announced it was laying off 200 hourly workers at its power unit in Schenectady. At the time, GE Power spokesperson Christopher Shigas provided the following statement to WAMC.
“Based on the ongoing challenges facing the power industry and a 45% decline in volume at our Schenectady facilities, GE announced a job reduction impacting a number of manufacturing and assembly employees today. This action is difficult and does not reflect the performance, dedication, and hard work of our employees. All impacted employees will be provided with a comprehensive severance package, including transition support to new employment.”
Another 1,500 scientists and technicians work at the GE's main research lab in neighboring Niskayuna.