General Electric Co. has delayed the completion of its new Boston headquarters in an effort to spread out the costs of the $200 million project, as new CEO John Flannery looks to cut spending.
GE is building a new headquarters on the Boston waterfront, uprooting itself from more than 40 years in Fairfield, Conn., where it sold its campus last year. It planned to renovate two existing buildings and build a new office tower, all for completion in 2019.
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The company said this week that it will continue the renovations but delay the start of the new building, which now isn't expected to be completed until 2021. News of the delay was earlier reported by the Boston Globe.
GE will get an incentive package from Boston and Massachusetts valued at as much as $145 million for moving 200 jobs and ultimately having about 800 at the headquarters.
The timeline on the new tower is the only change to the latest plans, GE said, and the company said it remains committed to Boston. Company executives have already moved into temporary Boston offices.
Mr. Flannery took the reins from GE's longtime leader Jeff Immelt earlier this month and is conducting a review of the entire company, including the headquarters project.
GE pledged to boost its cost-cutting program earlier this year after discussions with activist investor Trian Fund Management LP, which has been frustrated by missed profit goals at GE. GE has eliminated $670 million in industrial spending this year and is on track to meet or beat its full year $1 billion savings goal.
Separately, GE said Wednesday it would close a Rochester, N.Y., manufacturing facility by June 2018, cutting about 90 workers at the site. The plant makes electronic boards for the GE Power division; the work will move to China under partner Jabil Inc.
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(END) Dow Jones Newswires
August 09, 2017 16:36 ET (20:36 GMT)