GE Power announces plan to cut approximately 12,000 jobs
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Photo by Michele Tantussi/Getty Images(BOSTON) -- General Electric Power announced plans to cut approximately 12,000 jobs on Thursday, citing lower demands for coal and fossil fuel.

In a press release, GE said the layoffs would affect both professional and production employees. The move is part of an effort to "reach its announced target of $1 billion in structural cost reductions in 2018."

"Traditional power markets including gas and coal have softened," the company said. "Volumes are down in products and services driven by overcapacity, lower utilization, fewer outages, an increase in steam plant retirements and overall growth in renewables."

GE Power CEO and President Russell Stokes called the decision "painful but necessary."

"Power will remain a work in progress in 2018," Stokes added. "We expect market challenges to continue, but this plan will position us for 2019 and beyond."

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