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Struggling GE Makes a Surprise Move

CEO John Flannery is ousted after about a year
By Newser Editors,  Newser Staff
Posted Oct 1, 2018 8:22 AM CDT
GE's former Chairman and CEO, John Flannery.   (AP Photo/Richard Drew, File)
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(Newser) – More turmoil at GE: The company has ousted CEO John Flannery a little more than a year into the job. Flannery took over from longtime exec Jeff Immelt in August 2017 with grand plans to restructure General Electric and turn around its slumping fortunes, reports CNNMoney. But significant troubles at the company's power division apparently prompted the board to fire Flannery, a move that "stunned some inside the company," per the Wall Street Journal. That is, big changes were anticipated, but not at the CEO level. In fact, on Friday, Flannery himself had sent a rally-the-troops video to staff in regard to the power unit troubles, including the failure of gas turbines that forced power plants to close.

Flannery has been replaced, effective immediately, by H. Lawrence Culp Jr., who previously led a successful turnaround at the manufacturing company Danaher. GE shares were up 16% in pre-market trading on the news. Since the end of 2016, however, company shares have dropped nearly two-thirds. In addition to the surprise ouster, GE also announced that it expects to miss profit goals for 2018. (The company recently suffered an indignity on the stock market.)

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