GE is to focus on renewable energy as one of three pillars under a long-term strategy unveiled today.
Renewables, together with power and aviation, will become the core businesses for the company “making it easier for investors to follow and measure”, according to GE as part of the results of a strategic review.
The plans will see changes to how the company is run, with a smaller corporate headquarters focused primarily on strategy, capital allocation, talent and governance.
Most resources and services usually controlled at the headquarters level will be realigned to the businesses, GE said.
The changes are expected to save at least $500m by the end of 2020, it added.
GE chairman and chief executive John Flannery said: “Today marks an important milestone in GE’s history.
“We are aggressively driving forward as an aviation, power and renewable energy company -three highly complementary businesses poised for future growth.
“We will continue to improve our operations and balance sheet as we make GE simpler and stronger.”
The plans, which also included separating GE Healthcare as a standalone company, were unanimously approved by the company’s board of directors today.
Image: GE
GE unveils renewables vision
By EBS