In an effort to accelerate growth and profitability, General Electric is reorganizing its business structure. As of July 5, it will reorganize its 11 businesses into six.
These six businesses include GE Infrastructure, GE Industrial, GE Commercial Financial Services, NBC Universal, GE Healthcare, and GE Consumer Finance.
“This change allows us to leverage our exceptionally deep leadership team to accelerate growth and improve productivity,” said GE Chairman and CEO Jeff Immelt. “Dave Calhoun, Mike Neal and John Rice are three of the most respected leaders in business today. They will continue to help us drive our performance to record levels.”
These three, who are already GE leaders and currently presidents and CEOs of GE businesses, will act as advisors to the company’s Board of Directors.
The GE Infrastructure business will focus on Aircraft Engines, Rail, Energy, Oil & Gas, Water and things associated with these industries. “Dave will lead our efforts to penetrate fast-growing global infrastructure markets,” said Immelt. “This organization will accelerate our progress in developing markets like China, India and the Middle East. Leveraging common technology and services will also result in substantial gains in productivity.”
GE Commercial Financial Services will focus on Commercial Finance and Insurance. “Mike will continue to build our commercial finance assets in exciting global markets,” Immelt said. “At the same time, he will continue our strategic process in insurance. Mike will chair the GE Capital Board. Our risk policies will remain unchanged. GE CFO Keith Sherin will have responsibility for financial services risk oversight.”
GE Industrial’s focus will be on things like Plastics, Silicones/Quartz, Consumer & Industrial, Security & Sensors, Automation, and Equipment Services. “John is one of our best operating leaders,” Immelt said. “He will accelerate our efforts to improve growth rates, margins and cash in these global businesses.”
Aside from Calhoun, Neal, and Rice, there are some other management changes in the works at GE. Joe Hogan has been named to replace GE Healthcare President and CEO Bill Castell when he retires next year. GE Vice Chairman Dennis D. Dammerman is also retiring at the end of the year.
“These changes will accelerate GE’s growth in key industries,” Immelt said. “We have been moving toward a more customer-focused organization for several years. In addition, we believe we can reduce $200-300 million of cost in savings and structural redundancies.”
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
