New Delhi: The global restructuring of GE's USD 50 billion-energy business will not have any "significant impact" on its Indian team.
Diversified group GE, which has over 15,000 employees in India, has unveiled plans to split its energy business into three separate companies as part of efforts to reduce costs.
"We don't foresee any significant impact in our India team," a GE India spokesperson answered to a query on whether rejigging would lead to job cuts in the country.
The American conglomerate has more than 15,000 people in India and has a good representation in the energy business.
"In India, GE Energy, is represented by the businesses — Power and Water, Oil and Gas, and Energy Management," the spokesperson.
However, GE did not disclose details about revenues from India business citing company policy.
When asked about the impact of restructuring on its business in India, the spokesperson said the change would be seamless to the customers.
"The new structure reduces layers and lowers our cost structure, making us faster, leaner, and more competitive. The three new operating businesses, Power and Water, Oil and Gas, and Energy Management, are of a size and capability that they can stand on their own.
"Our customers will continue to see the same commitment to technology and quality that they have come to expect from the company," the GE spokesperson said.
In a significant move, GE on Friday announced that it is separating its energy business into three separate units -- Power and Water, Oil and Gas and Energy Management.
The restructuring, which would "speed decision making, reduces layers and decreases cost", would come into effect from the fourth quarter of 2012.
Globally, GE Energy Infrastructure has around 1,00,000 employees. This business is projected to see USD 50 billion revenues this year.
The restructuring announcement came on the same day when the conglomerate posted nearly 16 percent fall in net profit at USD 3.1 billion in the three months ended June. In the year-ago period, net profit were USD 3.68 billion.
"Big companies are always fighting organisational complexity. We are taking action at a time when the Energy business is doing well," GE Chairman and CEO Jeff Immelt said in a statement on Friday.
"The business had a solid quarter with earnings up 13 percent and has a big backlog of great products. Removing layers is one way to reduce costs and increase our speed, focus and agility in the marketplace so we serve customers better," he had said.
First Published: Sunday, July 22, 2012, 11:19