GE planning to cut 1,100 jobs from its UK power business under restructure
GE is proposing to cut 1,100 jobs from its UK power business under an organisational restructure, the firm announced.
The planned losses will mainly affect Stafford and Rugby, with the total potential losses representing around 6pc of the company's UK workforce.
GE said market conditions have had a "significant impact" on its economic performance, adding that demand for new built power plants had "dramatically" dropped in all OECD countries.
A statement said: "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 utilisation, fewer outages, an increase in steam plant retirements, and overall growth in renewables.
"To get back to competitiveness GE Power needs to remove cost substantially from its businesses."
Mark Elborne, GE's President and Chief Executive UK & Ireland, said: "Regrettably, the proposed changes would have an impact on jobs in the UK.
"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 in the UK.
"We have shared our proposals with employees' representatives today and will now begin a consultation period before any final decisions are made."
GE said the proposals were in response to changing market conditions, describing the worldwide power and grid segments as "essentially flat", with regions such as Western Europe experiencing a decline.
The statement said: "This increased pressure in the marketplace, coupled with intense competition and continuing pricing pressures, means GE Power has been working to eliminate costs, remain competitive and prepare for 2018 and beyond."
Mr Elborne added that GE remained committed to the UK, having almost 18,000 employees at 65 sites, and would remain one of the top five industrial companies in the country.