BOSTON -- General Electric Co. will cut 12,000 jobs globally in its power division as alternative energy supplants demand for coal and other fossil fuels.
The company said Thursday that 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.
The company says reducing the number of positions will trim costs by $1 billion at GE Power in 2018.
“This decision was painful but necessary for GE Power to respond to the disruption in the power market, which is driving significantly lower volumes in products and services,” said Russell Stokes, president and CEO, GE Power. “Power will remain a work in progress in 2018. We expect market challenges to continue, but this plan will position us for 2019 and beyond."
Last month GE announced that it was slashing its dividend in half and that the conglomerate would narrow its focus to three key sectors -- aviation, health care and energy.
The company has said it will shed assets worth more than $20 billion in the next couple of years. It's been paring businesses for over a decade now.