General Electric Company Chairman and CEO Jeff Immelt today announced a new organization aimed at accelerating growth and profitability for the fairfled, Conn.-headquartered giant.
Effective July 5, GE 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.
New vice-chairmen will lead three of the businesses: Dave Calhoun, 48, Infrastructure; Michael Neal, 52, Commercial Financial Services; and John Rice, 48, Industrial. As vice chairmen of the company, they will act as advisors to the GE board of directors. All three are experienced GE leaders and currently presidents and chief executive officers of GE businesses.
GE Commercial Financial Services, led by Mike Neal, will include Commercial Finance and Insurance. “Mike will continue to build our commercial finance assets in exciting global markets,” Immelt said. “At the same time, he will continue our strategic process in insurance. Mike will chair the GE Capital Board. Our risk policies will remain unchanged. GE CFO Keith Sherin will have responsibility for financial services risk oversight.”
GE Infrastructure, led by Dave Calhoun, will include Aircraft Engines, Rail, Energy, Oil & Gas, Water and the financial verticals associated with these industries.
GE Industrial, led by John Rice, will include Plastics, Silicones/Quartz, Consumer & Industrial, Security & Sensors, Automation, and Equipment Services.
In GE Healthcare, Joe Hogan has been named president and CEO. He will succeed Bill Castell when Castell retires from Healthcare in 2006, in accordance with his wishes. GE’s Healthcare business will continue to be based in London.
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,” Immelt said. “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.”
Immelt also said the changes would enhance the company’s financial transparency by providing key financial data for significant units within the six businesses.