- The proposal involves a reduction of approximately 1,400 jobs in Switzerland however it does not include any site closures and
- Switzerland remains important to GE Power and Baden (AG) will continue to be the headquarters location for the Steam Power Systems and Power Services businesses.
- The proposal retains significant expertise in Gas Project and Plant Engineering, Steam Turbine engineering as well as the Services for both Steam and Gas plants.
- It is subject to consultation process with the internal worker’s representatives.
Baden, 7. December 2017 - GE (NYSE: GE) today announced that it has presented a proposed restructuring plan to our European social partners in response to the incredibly challenging energy market. GE Power businesses have been facing, and continue to face, this tough environment as a result of a combination of factors, the rise of renewables, increased energy efficiency, strong electricity price pressures including increased global competition. The proposal includes a reduction of approximately 1,400 jobs in Switzerland over the next two years.
“I regret that we have to propose this redundancy plan”, says Michael Rechsteiner, Vice President & CEO of Power Services Europe and a GE Officer. “We never make these decisions lightly. That said, we believe that implementing these proposals will allow us to improve efficiency, control costs and create a Power business that can compete and succeed in the long term”, says Michael Rechsteiner.
“Switzerland remains important to GE Power and Baden will continue to be the headquarters for Steam Power Systems and Power Services”, Michael Rechsteiner added. This proposal retains significant expertise in project and plant engineering for gas plants and Baden will serve as a global center to leverage our experience in growth markets outside of Europe, a core team of highly skilled engineers for research and development of steam turbines, and service capability for both steam and gas plants. The production sites Birr and Oberentfelden are maintained.
Decreasing demand for power plants and negative order forecasts
The market conditions have had a significant impact on GE Power’s economic performance. Demand for new built thermal power plants dramatically dropped in all OECD countries. Traditional utility customers have reduced their investments due to market deterioration and uncertainty about future climate policy measures.
Today’s actions are driven by challenges in the power market worldwide. Traditional power markets including gas and coal have softened. Volumes are down significantly in products and services driven by overcapacity, lower utilization, fewer outages, an increase in steam plant retirements, and overall growth in renewables. To get back to competitiveness GE is forced to take out cost substantially from our businesses.
Continuation of competitive social plan
GE Power recognizes that this is a personally difficult situation for employees. As during the first consultation process in 2016, GE will make available every possible solution to mitigate the impact of the measures on the personnel affected by the reorganization.
“As during the last restructuring in 2016, we are committed to a very similar, highly competitive social plan for 2018. Our philosophy remains the same - do everything we can to find reemployment for every employee that is affected”, says Michael Rechsteiner. This includes to continue using GE’s own Career Center which during the previous restructuring contributed significantly to the fact that 90% of affected employees found reemployment before the end of their employment with GE.
About GE Power
GE Power is a world leader in power generation with deep domain expertise to help customers deliver electricity from a wide spectrum of fuel sources. We are transforming the electricity industry with the digital power plant, the world’s largest and most efficient gas turbine, full balance of plant, upgrade and service solutions as well as our data-leveraging software. Our innovative technologies and digital offerings help make power more affordable, reliable, accessible and sustainable.
For more information, visit the company's website at www.gepower.com. Follow GE Power on Twitter @GE_Power and on LinkedIn at GE Power.
For more information, please contact:
Martin Hofer, Farner PR
+41 79 238 3062