Nov 9, 2021 - Economy & Business

General Electric to break up into 3 independent companies

A General Electric employee between wind turbine nacelles during the construction of a wind farm near Saint-Nazaire, France, in September 2021.
A General Electric employee between wind turbine nacelles during the construction of a wind farm near Saint-Nazaire, France, in September. Photo: Sebastien Salom-Gomis/AFP via Getty Images

General Electric announced Tuesday it will break itself into three independent companies focused on aviation, health care and energy.

Why it matters: The planned split of the once industrial powerhouse comes after years of seeing its stock underperform and the buildup of high levels of debt.

What they're saying: "The world demands — and deserves — we bring our best to solve the biggest challenges in flight, health care and energy," GE CEO Lawrence Culp said in a statement.

  • "By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation and strategic flexibility to drive long-term growth and value for customers, investors and employees," he added.

The big picture: It hopes to spin off GE Healthcare in early 2023 and combine GE Renewable Energy, GE Power and GE Digital into one business in early 2024.

  • GE itself will continue on as an aviation-focused company led by Culp.

Go deeper: Meet General Electric's flexible power transformer

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