As Deutsche Welle (DW) reports, it has been confirmed that GE will close its transformer plant in Mönchengladbach, Germany, as part of the announced 12,000 job cuts in its power and energy business around the world, which is almost 20 percent of its current global workforce in that sector.
The company's German workforce will be considerably affected by the job losses, with 1,600 jobs expected to go in the cities of Mannheim, Stuttgart, Berlin, Mönchengladbach and Kassel.
In Mönchengladbach, all 371 employees in the transformer plant will have to look for a new job, as the plant closes in 2019, reports RP Online.
Rumours of significant job cuts were also confirmed by labour unions in Switzerland, where up to a third of the company's workforce will lose their jobs.
According to the official press release, GE says the job losses are needed in order to reduce its structural costs by the previously announced target of $1 billion (€849 million) by 2018.
"This decision was painful but necessary for GE Power to respond to the disruption in the power market, which is driving significantly lower volumes in products and services," said Russell Stokes, president and CEO of General Electric's power division, known as GE Power.
Source: GE, Deutsche Welle; RP Online