GE Plans Job Cuts At Boston Headquarters: Report

FAIRFIELD, CT — A little more than a year after officially becoming a Boston-based company, General Electric is expected to make cuts at its new headquarters, according to a Reuters report. GE moved out of its Fairfield home of more than 40 years last year and set up shop at the Hub in Boston with plans to inhabit nearby office buildings on a temporary basis while its official headquarters is built in Fort Point.

New CEO John Flannery, who took over for Jeff Immelt a month ago, has told top executives to prepare for significant cuts at headquarters and other areas that do not produce revenue or profit, according to Reuters, citing a source.

The source told Reuters that the cuts are going to be “aggressive” and that Flannery would also limit the size of the new headquarters to save money.

See also:

• General Electric CFO ‘Hated’ Fairfield Headquarters: Report
• GE Officially a Boston-Based Company
• Boston Bound: GE Makes Its Decision
• Malloy: GE’s Move to Boston ‘Hurts’

The city and state came up with millions in incentives to help entice GE to Boston, including up to $25 million in property tax relief from the city and a state package of up to $120 million in additional benefits.

There's also another $5 million in combined support in the offing for an attached innovation center meant to connect GE to community startups and entrepreneurs, among other promises, such as improved public transportation. GE, in turn, pledged 800 Boston jobs.

Read the full Reuters report here.

With reporting by Alison Bauter (Patch Staff)