Exclusive General Electric to Cut 6,500 Jobs in Europe
General Electric plans to cut 6,500 jobs in Europe following GE’s takeover of France’s Alstom. Of that number, 1,700 jobs in Germany will be lost. GE, which bought Alstom’s businesses which make gas and steam turbines, trains and power grids last year, said in a statement it was adapting its operations to Europe’s changing energy industry. “Electricity production, particularly using gas and steam turbines, has declined significantly in the past few years in Europe,” GE said in the statement. In Germany, 1,700 jobs, or 15 percent of a total 11,000 employees, will be affected as GE makes the former Alstom operations more competitive and merges them with GE’s current activities. GE rival Siemens, headquartered in Munich, has also struggled with its gas turbine operations in Europe and last year moved its energy unit’s headquarters to Houston from southern Germany. Germany’s shift to renewable energy has reduced demand for some of the equipment produced by Siemens, GE, Alstom and other rivals. GE will cut a total of 6,500 European jobs over the next two years, a GE spokesman told Reuters and Bloomberg. This represents 7 percent of GE’s European workforce of 90,000, according to GE’s European website.
01/13/2016 - 02:30 PM