Houston, Texas-based oilfield services company Baker Hughes, a subsidiary of the troubled General Electric Company, has announced that it will close its Schertz, Texas Turbomachinery & Process Solutions facility and lay off 266 employees.
According to Baker Hughes spokesperson Melanie Kania, the decision to close the facility was made “This decision comes after a careful review of how best to adjust our operations to best align where future business and opportunity exists. These decisions are never easy because it affects our colleagues and friends. We are committed to working closely with our employees through this transition, providing assistance and resources to those affected." Only four years ago, in February 2014, GE Oil & Gas Inc. had announced that the company will invest $8 million and add 175 jobs at its manufacturing facility in Schertz by next year.
But it gets worse as General Electric has announced that they will divest its ownership in Baker Hughes as it restructures the iconic company over the next two to three years. General Electric itself has announced major restructuring plans that will pare its headquarters operations, probably at the expense of a thousand or more employees throughout the enterprise.
In announcing the results of their strategic review ...
“GE plans to fully separate its 62.5% interest in BHGE in an orderly manner over the next two to three years. BHGE’s full stream offering brings together equipment, services, and digital solutions to help its customers be more productive—a unique and powerful value proposition in a changing market. The separation will provide BHGE with enhanced agility and the ability to focus on leading in the oil and gas industry.”
“Oil & Gas was separated from GE in July of 2017 when we made the strategic decision to combine it with Baker Hughes. There's strong industrial logic for the transaction, the companies are much stronger together and shareholders are getting the benefit of significant synergies both on the revenue and cost side as well as benefiting from substantial combined technology. We expect to pursue an orderly separation of the company within 2 to 3 years with a focus on maximizing value for BHGE and GE.”
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