NEW YORK (GenomeWeb News) – General Electric announced Friday that it is streamlining its unit structure from six units down to four units. In the process, GE Healthcare will no longer operate as a standalone unit, but it will be folded into the new GE Technology Infrastructure unit.
The reorganization is intended to align the businesses “for growth and efficiency,” the firm said in a statement. GE’s stock price has sagged over the past few months after company officials said that the firm would miss its 2008 earnings per share target of $2.42.
The Healthcare business will join Aviation, Transportation, and Enterprise Solutions as components of the Technology Infrastructure unit, which will have revenues of nearly $90 billion. Vice Chairman John Rice will lead the unit.
In advance of the reorganization, former GE Healthcare CEO Joseph Hogan left the firm two weeks ago to take over as CEO of power and automation company ABB.
The other three units are GE Energy Infrastructure, GE Capital, and NBC Universal. GE said a couple of months ago that it intends to jettison its Consumer & Industrial unit, which includes household appliances, lighting, motors, and electrical distribution.