SCHENECTADY, N.Y. (NEWS10) — General Electric announced today that it will split into three separate individual companies.
General Electric’s CEO Larry Culp said the debt reducing decision by the manufacturing giant create three companies focusing on aviation, health care (manufacturing things like imaging machines), and renewable energy and power. Each company will have its own CEO and its own board of directors.
Charlie Brown, the Director of Portfolio Strategies with Greypoint in Albany broke the plan down saying, “In 2023 their plan is to spin off the healthcare business so that healthcare business will become its own individual company. In 2024, the power business will become its own individual company. And then what’s left will be the Aviation business.”
GE says they will maintain control over the Aviation business only. However, the GE campus based in Schenectady focuses on renewables, gas and steam turbines, and generators. They already suffered recent layoffs, but it is too early to tell how things will play out now.
Carl Kennebrew, President of IUE-CWA, the largest union representing GE workers, said, “We are continuing to fight for our member’s jobs at GE and across the country and definitely right here in Schenectady. And GE could be the next hub for offshore wind production.”
General Electric has been focused on shedding massive debt by selling off parts of its global company for many years now. While splitting up a company may not be great for workers, Brown says it can benefit investors. “Today’s news is very good for investors, but there are questions about what this could mean for the current employees,” he said.
Bill Buell, the Schenectady County Historian stood outside the main gates of General Electric’s Schenectady campus and spoke about GE’s past “In 1945, there were 44,000 people working here which is amazing.”
When Anya asked Buell how he might feel if he didn’t the iconic GE sign in the Schenectady skyline a few years from now. “Boy, it would be sad to see them go,” he said. “It really would be.”