General Electric is ditching its 100,000-square-foot headquarters in Boston, once billed as a milestone move for the industrial giant, as it looks to downsize.
The headquarters, in the Forte Point section of the city, was initially expected to have roughly 800 employees, including 200 corporate staff and 600 digital industrial product managers, designers and developers. However, the Boston Globe, the first to report the story, said it has less than 200 employees based there, some of which only come in on a part-time basis.
A GE spokesperson confirmed to FOX Business that it is working to locate a new, smaller office space in Boston. The company has reimbursed the state of Massachusetts for its investments in the property and did not accept any funds from the city.
In addition to downsizing in Boston, the company will wind down its physical space at some other corporate sites and pursue a sale of Crotonville learning campus in Ossining, New York. GE will consolidate office space in Norwalk, Connecticut, and exit its facility at Madison Avenue in New York in December.
The latest moves mark the next step in GE's plan to split its business into three separate companies.
GE's health care unit will spin off in early January to form GE HealthCare, which will trade on the Nasdaq under the ticker symbol GEHC. Meanwhile, GE Renewable Energy, GE Power, GE Digital and GE Energy Financial Services will be spun off in early 2024 to form GE Vernova.
Following the tax-free spinoffs, GE will become an aviation-focused company called GE Aerospace, which will own the company's trademark and provide long-term licenses to the other companies.
In addition to scaling back its real estate footprint, GE recently revealed that it would cut 20% of its onshore wind workforce in the United States. At the time, the company told FOX Business that it would also review its onshore wind footprint in Europe and the Asia-Pacific region.
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As of the time of publication, shares of GE are down approximately 26% year to date.
Reuters contributed to this report.