GE CEO John Flannery announced the company would streamline its broad portfolio by selling its locomotive and lighting units and concentrate on power generation, aviation and healthcare.
Flannery also said the company will consider selling its controlling stake in Baker Hughes, the company that now houses its oil and gas unit.
The 125-year-old company also cut its dividend—for only the third time in history—and its profit outlook.
“Complexity has hurt us,” Flannery told investors during a presentation. “We have not performed well for our owners. The management team is completely devoted to doing whatever it takes to correct that. Going forward, we really just have to focus on how we can create the most value from the portfolio of assets we have for our owners. We are going to do that with a very dispassionate eye.”
During the presentation, GE said the company needed “right-sizing” in its power segment to reduce costs. The company is looking for more than US$1 billion in structural cost savings and needs to address overcapacity.