General Electric Company (NYSE:GE) announced on Thursday it would be cutting 12,000 jobs at its global power business as it responds to waning demand for fossil fuel power plants.
The US company launched the cuts to save $1 billion in 2018, saying it expected current difficulties in the sector to continue.
"Traditional power markets including gas and coal have softened," GE was quoted as saying by Reuters.
READ: General Electric shares sink after CEO predicts no profit growth in its power unit
The news agency said that rumors of “sweeping job cuts” were confirmed by labor union sources on Wednesday, with “staff in Switzerland and Germany among those badly hit.”
General Electric’s power unit has also indicated it will end manufacturing operations at its plant in Salem, Virginia, next year, with more than 260 workers losing their jobs, according to union officials.
General Electric shares were down 0.2% to US$13.27 in pre-market trade.