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General Electric has announced it is planning to cut up to 6,500 jobs in energy units it bought from French engineering giant Alstom over the next two years.

The figure includes 765 jobs to go in France.

To secure the deal last year, GE had soothed French government concerns by pledging to create 1,000 jobs in the country.

A GE spokesman said the company would stick to its pledge, creating the roles in the next three years.

In Europe as a whole, staff in Alstom’s renewables, power services and energy management divisions could be affected.

A spokesman said unions had been informed.General Electric job cut Europe

“This is a plan, which could change following discussion with employee representatives,” he added.

Around 1,300 of the layoffs will be in Switzerland, the company said.

In May 2015, GE pledged to create jobs in France as part of efforts to calm French government concerns about the company’s proposed acquisition of Alstom’s energy units.

At the time, both GE and Siemens were in talks with the French government to try to secure a deal.

The French government had previously given itself powers to block foreign takeover bids for companies deemed “strategic”.

GE’s takeover of Alstom’s energy business – which includes gas and steam turbines, wind turbines, turbines for hydro dams and power grids – added about 65,000 employees to GE’s workforce of about 305,000.

The head of GE’s power division said in September 2015 the company would seek to make $3 billion in cost savings over five years from the Alstom acquisition.


Alstom’s board has unanimously voted to accept a $17 billion offer from General Electric.

GE is bidding $17 billion for the French rail and energy group’s energy business. The deal still needs regulators’ and Alstom staff representatives’ approval.

The French government agreed to support the deal, which will involve the state buying a 20% stake in Alstom, and other steps to protect French interests.

Alstom’s board has unanimously voted to accept a $17 billion offer from General Electric

Alstom’s board has unanimously voted to accept a $17 billion offer from General Electric

A rival offer from Siemens-Mitsubishi Heavy Industries was rejected.

GE chief Jeff Immelt said the deal would be “good for France, GE and Alstom”.

If approved, the deal is expected to be completed in 2015. Reports say it would be GE’s largest ever industrial acquisition.

Under the deal, GE will sell its railway signal business to Alstrom, and set up three joint ventures with the French company.

The joint ventures would cover Alstrom’s power grid business, renewable operations, and nuclear steam turbines.

Alstom employs about 18,000 people in France. The government had asked for assurances that French energy and transport interests and jobs would be safeguarded.

It plans to acquire a controlling stake in Alstrom by buying shares from French group and main shareholder Bouygues.

However, the government wants to pay market price (28 euros per share) while Bouygues is demanding about 35 euros per share.

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