Weak earnings associated with General Electric’s (GE’s) underperforming $ 10.1 billion investment in Alstom have prompted the giant conglomerate to rejigger its power business and lean more heavily on other segments.

GE Power, the company’s long-standing and lucrative business unit that has installed 1.6 GW of the world’s installed capacity over its 125-year history, has also suffered costly operational misses owing to softer markets for new capacity and an energy transition unfolding worldwide, company executives said in a November 13 investor call.

While the GE Power franchise remained “good,” even in the face of a “tough market,” GE had “exacerbated the market situation with some really poor execution,” GE CEO John Flannery said.

GE, a company renowned for technology breakthroughs will now seek to reinvent itself with a number of broad changes, including shrinking its board from 18 to 12, shaking up leadership, and shifting its focus to cultivate more earnings for shareholders.

At GE Power, specifically, the changes relate to costs, capital allocation, working capital and operations, governance, and culture.…

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