Up to 1,100 positions are at risk at General Electric, which is looking to make savings across its UK GE Power business.
The company said in a statement that it needs to ‘remove cost substantially’ as a result of market conditions that have ‘had a significant impact on GE’s economic performance’.
These include a drop in demand for new power plants in all OECD countries, and further challenges in the global power market brought about by factors such as a softening demand for gas and coal plants.
GE added: “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.”
Mark Elborne. president and CEO GE UK & Ireland said: “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…and will now begin a consultation period before any final decisions are made.”
In total, the proposals potentially impact approximately 1,100 positions across all parts of the UK GE Power business, including Power Digital and Global Operations. This represents about six per cent of total GE workers in UK where the proposals will primarily impact activities in Stafford and Rugby.
Commenting on GE’s announcement, Unite national officer Linda McCulloch said: “General Electric is in danger of cutting too far, too fast and leaving itself ill equipped to meet the challenges of the changing power generation market.”