Fairfield, Conn.—General Electric Co. announced Thursday that it will reorganize its 11 businesses into six industry-focused businesses: GE Infrastructure, GE Industrial, GE Commercial Financial Services, NBC Universal, GE Healthcare and GE Consumer Finance.
This change in structure, which takes effect July 5, follows fast on the heels of GE's "Ecomagination" campaign that presents the corporation as environmentally aware. New vice-chairmen will lead three of the businesses: Dave Calhoun, Infrastructure; Michael Neal, Commercial Financial Services; and John Rice, Industrial.
GE Infrastructure will include Aircraft Engines, Rail, Energy, Oil & Gas, Water and the financial verticals associated with these industries.
GE Commercial Financial Services will include Commercial Finance and Insurance. GE Industrial will include Plastics, Silicones/Quartz, Consumer & Industrial, Security & Sensors, Automation and Equipment Services.
Joe Hogan has been named to succeed Bill Castell as president-CEO of GE Healthcare. Castell plans to retire from GE Healthcare in 2006.
The operating structures of NBC Universal, led by GE Vice Chairman Bob Wright, and Consumer Finance, led by Dave Nissen, are unchanged.
"These changes will accelerate GE's growth in key industries," GE Chairman-CEO Jeff Immelt said in a statement. "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."