Even more cuts are coming to General Electric.
The company will cut 12,000 jobs in its GE Power division because of dwindling demand for fossil fuels such as coal and natural gas. The company says the cuts to both office and production jobs, will help "right-size" GE Power, as traditional power markets, and volume of the fuels that power them, decline.
In a statement, GE Power CEO Russell Stokes called it a "painful but necessary" decision, but one that will save GE about $1 billion in 2018. "GE Power will remain a work in progress in 2018," he said.
"Trying to pinpoint the businesses that will turn around the company is going to be difficult to do," said WGY financial analyst Dennis Fagan of Fagan Associates in Troy.
The news follows word that 45-hundred jobs will be eliminated in Europe as part of CEO John Flannery's plans to cut costs. Here in Schenectady, the company has announced three rounds of layoffs in the last year, including a reduction of 75 salaried positions.
Asked about the impact on GE's stock, Fagan said he feels it will be "dead in the water" for a while. "If you want to buy into GE, you'd better do it two or three times, and then it's going to take a while to turn it around."
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