General Electric Co., Fairfield, Conn., said it will combine its GE Appliances and GE Lighting businesses into a single business, GE Consumer Products, to cut costs.
“Because Appliances and Lighting have powerful connections with a similar consumer base, we believe they will now be able to grow more successfully together than either would on its own,” said GE Chairman Jeff Immelt.
GE Consumer Products, with annual revenues of more than $8 billion, will be headquartered in Louisville, Ky., and maintain a substantial presence in Cleveland.
“This reorganization will enable Lighting and Appliances to provide more cost-effective and pointed approaches to supporting all of our customers' needs,” said Immelt.
At the same time, he said, GE will create enhanced capabilities to better serve commercial customers — from the home builder channel in Appliances to many commercial and industrial customers in Lighting.”
James Campbell, president and CEO of GE Appliances, has been named the president and CEO of GE Consumer Products. Jack Fish, currently vice president of Global Manufacturing for GE Lighting, will become chief operating officer of Lighting and area executive in Cleveland for GE Consumer Products. Matthew Espe, president and CEO of GE Lighting, is leaving to become head of IKON Office Solutions.
The changes are effective immediately. GE will begin to consolidate Appliances and Lighting operations around the world where it makes most sense, especially in areas of administration and retail services, the company said.
Appliances and lighting are two of GE's better-known products. Last year, GE lighting and appliances generated a combined profit of about $1 billion on $8.3 billion in revenue.