Stories

General Electric scales back Boston HQ plans

Construction on GE's new Boston headquarters
Construction on GE's new Boston headquarters in April 2018. Photo: David L. Ryan/The Boston Globe via Getty Images

Just hours after Amazon bailed on New York City, General Electric confirmed Thursday that it will scale back plans for a new headquarters in Boston. It also will reimburse Massachusetts for $87.4 million in incentive payments.

The bottom line: New jobs promises are empty until people are actually hired.

  • GE originally announced in March 2016 that it would move its headquarters from Connecticut to Boston's Seaport District, including the construction of a new campus on a 2.7-acre site. The company expected to employ around 800 people and anchor a new innovation hub that was expected to include participation by other local companies and universities.
  • But that deal was done under former CEO Jeff Immelt, and the company has since seen its stock lose over two-thirds of its value.
  • Today's announcement includes the reimbursement of the money originally used to acquire and prepare the new headquarters site — and the actual property will now be jointly marketed for sale to someone else. GE will still move into the new facility, but with only around 250 employees.

Go deeper: Podcast: Corporate tax breaks and broken promises

Never miss a major business story

Get breaking news alerts sent directly to your inbox