GE Shifts Units to Simplify Operation

General Electric Co. on Thursday announced a streamlining of its businesses and a management reshuffling designed to allow Chief Executive Jeff Immelt to put his own stamp on the sprawling conglomerate.

GE, with businesses including healthcare, aerospace and television, named three new vice chairmen and trimmed its operating units to six from 11, saying the reorganization could save $300 million and speed decisions.

The leadership shuffle also was aimed at retaining the most sought-after senior executives at GE, which has provided CEOs for a number of major U.S. companies in the past, analysts said.

GE, which reported revenue totaling nearly $40 billion for its first quarter, also affirmed its second-quarter and full-year earnings forecasts.

Under the reorganization, GE’s units will be GE Infrastructure, GE Industrial, GE Commercial Financial Services, NBC Universal, GE Healthcare and GE Consumer Finance.

The moves drew praise from industry analysts. Still, on Wall Street, shares of GE fell 84 cents, or 2.4%, to $34.66.

As part of the realignment, GE promoted Dave Calhoun, 48; Michael Neal, 52; and John Rice, 48, to vice chairman to oversee the company’s three largest businesses.

Calhoun will lead the $43-billion infrastructure unit, Rice will lead the $33-billion industrial business, and Neal will oversee the $45-billion commercial finance business.