Beginning July 5, Fairfield, Conn.-based General Electric Co., a diversified conglomerate, will regroup 11 current business units into six, with the expectation of accelerating growth and profitability. The new groups will be GE Infrastructure, which will include the company's aircraft engine, rail and energy businesses; GE Industrial, which will include, among others, plastics, automation and consumer products; GE Commercial Financial Services; NBC Universal; GE Healthcare; and GE Consumer Finance.
Three new vice chairmen of GE's board will lead three of the new groups: David Calhoun, Infrastructure; Michael Neal, Commercial Financial Services; and John Rice, Industrial. Robert Wright, a current GE vice chairman, will continue to lead NBC Universal, and David Nissen will continue as head of Consumer Finance. Joe Hogan has been named president and CEO of GE Healthcare and next year will succeed the retiring Sir William Castell.
"These changes will accelerate GE's growth in key industries," said Jeffrey Immelt, GE chairman and CEO, when the reorganization was announced on June 23. "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."