General Electric Co. announced Thursday that it will cut 12,000 jobs from power division amid a global softening of electricity demand and the switch from coal and other fossil fuels.
"The plans announced today are driven by challenges in the power market worldwide," the manufacturing giant said.
The company said Thursday that the cuts will "right-size" GE Power amid the transition taking place in the power markets.
"This decision was painful but necessary for GE Power to respond to the disruption in the power market," said GE Power head Russell Stokes.
Stokes added that at its core, GE Power remains "a strong business.” He said the company generates more than 30 percent of the world's electricity while providing the equipment to 90 percent of transmission utilities globally.