GE to cut 1,100 UK jobs
Company blames fall in demand for new power stations and lack of investment for cost-cutting drive and low oil price.
US firm General Electric plans to cut 1,100 jobs from the UK power and oil and gas infrastructure business as part of a Europe-wide cost-cutting exercise, blaming a fall in demand for new power stations and dwindling investment by its clients and low oil price .
The job losses would affect staff in Aberdeen with BHGE cuts and Stafford, reducing GE’s 18,000-strong UK workforce by 6%. The company plans to cut 12,000 jobs globally.
“Today’s actions are driven by challenges in the power market worldwide,” GE said, adding that conditions in western European market have been particularly poor.
“To get back to competitiveness GE Power needs to remove cost substantially from its businesses.”
Mark Elborne, head of GE UK & Ireland, said: “These are not proposals we ever make lightly and we understand that this news will be difficult for many people. Unfortunately we believe that these changes are necessary to ensure that we can remain competitive and secure the future of GE Power and oil and gas in the UK.