EMCC European Monitoring Centre on Change

General Electric

Company/Organisation:
General Electric

Geographic Location

Country: France
Location of affected unit(s): Belfort, Bourogne, Boulogne-Billancour

Company

Sector: Manufacturing
Manufacture of machinery and equipment n.e.c.
28.11 - Manufacture of engines and turbines, except aircraft, vehicle and cycle engines
Number Employed: 15500

Employment Effects

Announcement Date: 28-05-2019
Planned Job Reductions min: 1044
Planned Job Reductions max: 1044
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-09-2019

Additional Information

The management of the American group General Electric (GE) has announced 1,044 job cuts in its gas turbine manufacturing and support functions. The job cuts mainly concern the Belfort and Bourogne sites. The gas turbine division will lose 792 of the 1,800 positions in Belfort and Bourogne, while 252 jobs will be lost in the administrative services, some of them at the headquarters at Boulogne-Billancourt (Haut-de-Seine). The reorganisation is based on two reasons: first, GE's power generation division saw its revenues decline by 22% in 2018 worldwide, with an operating loss of USD 1 billion (€ 896,600,000). Secondly, the world market for gas-fired power plants has shrunk and orders have diminished. In 2008, 100 gas turbines were leaving the Belfort site, compared to only 29 in 2018.

These job cuts affect the activities acquired by GE from Alstom in 1999. They do not concern those acquired in 2015, which General Electric has undertaken to protect from any workforce reduction for three years. However, since GE took over Alstom Energie, it  announced 765 job cuts in January 2016 while it announced 1,000 job creation before 2019. But, as GE failed to create any position in this period, a €50 million financial contribution has to be paid to the French State. The money will be used to reindustrialise the geographical areas hit by job cuts and could also be used to support dismissed employees. GE announced 470 job cuts in January 2019, after the expiry of the 'three years of employment protection' deadline.

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