GE cuts 12k jobs from power business

General Electric will cut 12,000 jobs in its power division as part of its restructuring plan and attempt to deal with a decreased demand for coal and natural gas, according to USA Today.

The cuts will be made to its GE Power Unit, and while it is not yet clear where and when the reductions will occur, company officials said they would include "professional and production employees," USA Today reports.

On Wednesday, it was reported that GE had announced plans to eliminate 4,500 jobs in Europe from its French conglomerate Alstom's power and grid businesses. Both moves have been attributed to CEO John Flannery's plan to refocus the company on its healthcare, aviation and energy businesses.

GE said the cuts would contribute to its plans to strike $3.5 billion in "structural costs" in 2017 and 2018, which includes a $1 billion cost-cutting plan in 2018 targeting the GE Power business.

"This decision was painful but necessary for GE Power to respond to the disruption in the power market, which is driving significantly lower volumes in products and services," GE Power CEO Russell Stokes said in a statement, according to USA Today. "Power will remain a work in progress in 2018. We expect market challenges to continue, but this plan will position us for 2019 and beyond."

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