GE reorganizes 11 businesses into six
Fairfield, CT—General Electric Co. reports that on July 5 it will reorganize its 11 businesses into six industry-focused ones, including GE Infrastructure, GE Industrial. GE Commercial Financial Services, NBC Universal, GE Healthcare, and GE Consumer Finance.
Fairfield, CT— General Electric Co. reports that on July 5 it will reorganize its 11 businesses into six industry-focused ones, including GE Infrastructure, GE Industrial. GE Commercial Financial Services, NBC Universal, GE Healthcare, and GE Consumer Finance. New vice-chairmen will lead three of the businesses, including Dave Calhoun, who will run GE Infrastructure; Michael Neal, who will manage GE Commercial Financial Services; and John Rice, who will lead GE Industrial. They also will act as advisors to GE’s board of directors.
“This change allows us to leverage our exceptionally deep leadership team to accelerate growth and improve productivity,” explains Jeff Immelt, GE’s chairman. “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.” Reporting to the six businesses are 35 operating leaders, 40% of whom are global and diverse.
GE Infrastructure will include it aircraft engine, rail, energy, oil and gas, water, and the financial verticals associated with these divisions. “Dave will lead our efforts to penetrate fast-growing global infrastructure markets,” says Immelt. “This organization will accelerate our progress in developing markets, such as China, India, and the Middle East. Leveraging common technology and services will also result in substantial gains in productivity.”
GE Commercial Financial Services will include Commercial Finance and Insurance. “Mike will continue to build our commercial finance assets in exciting global markets,” adds Immelt. “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 will include plastics, silicones/quartz, consumer and industrial, security and sensors, automation, and equipment services divisions. “John is one of our best operating leaders,” says Immelt. “He will accelerate our efforts to improve growth rates, margins and cash in these global businesses.”
Meanwhile, Joe Hogan has been named president and CEO of GE Healthcare, and will succeed Bill Castell, who plans to retire in 2006. The operating structures of NBC Universal and Consumer Finance are unchanged.
“These changes will accelerate GE’s growth in key industries,” reports Immelt. “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.”
Control Engineering Daily News Desk
Jim Montague, news editor