On Wednesday, The Boston Globe reported that manufacturing giant General Electric Co GE is moving their global headquarters to Boston.
The report also said that company executives had contacted Massachusetts Governor Charlie Baker and Boston Mayor Marty Walsh to let them know they should expect a formal announcement about the move soon.
GE has been contemplating a moving since this past summer when Connecticut lawmakers—the company is currently headquartered in Fairfield, CT—passed a budget that included a tax increase of $1.2 billion despite multiple protests from large corporations located in the state.
New York, Georgia, and Providence, Rhode Island were among other locations that vied as possible suitors for the company’s relocation.
GE already has many businesses located in the Boston area, so it makes sense that the company chose the city as the new location for their headquarters. These include ventures in life sciences, jet engines, and Current, a new lighting business.
In other company news, GE reportedly has plans to cut 6,500 jobs In Europe. These cuts will take place at energy businesses that are part of the company’s $10.3 billion acquisition deal of French company Alstom SA’s power business
According to a report by The Wall Street Journal, roughly 765 jobs will be eliminated in France, most of them coming from Alstom’s headquarters outside Paris and at an electric grid business. The job cuts are part of a restructuring plan, and reflect about 14% of the 48,000 workers that are employed in GE’s power and water units in Europe.
Apart from France, the move will impact jobs based in Germany and Switzerland as well, along with other cuts across the continent.
“This is a necessary step to increase the competitiveness of the former Alstom businesses and generate the synergies we have targeted,” a GE told the Journal. “We will work constructively with employee representatives throughout the process.”
The job reductions do not come as a surprise, however, as the move was expected since GE’s acquisition of Alstom; the company made a promise to its investors that it would cut $3 billion in annual costs from the combined operation by 2020.
Currently, GE stock is trading up a slight 0.26% to $28.72. The company holds a #3 (Hold) on the Zacks Rank.
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