General Electric is scaling back ambitous plans for a new headquarters in Massachusetts and will repay the state for the over $87 million in incentives it received to relocate to Boston as the struggling firm downsizes its portfolio under new CEO Larry Culp.
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The Thursday announcement came shortly after Amazon said it would abandon plans to build a new headquarters in New York City amid uproar over the $3 billion incentive package the e-commerce giant was slated to receive.
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To repay the state, Massachusetts and GE jointly agreed to sell the company’s Fort Point Channel property – which includes a vacant space where it had intended to construct a new facility and two other buildings. GE plans to then lease those buildings from the future buyer, ultimately paying back the $87.4 million it received in incentives, a spokeswoman told Fox Business.
“We are looking forward to moving into our permanent headquarters space in the refurbished Necco brick buildings later this year. While changes in the company’s portfolio and operating model will lead to a smaller corporate headquarters, we are fully committed to Boston and proud to call it home,” Vice President Anne Klee said in a statement.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| GE | GENERAL ELECTRIC COMPANY | 10.05 | -0.32 | -3.13% |
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The shift comes as the once iconic American company struggles to shore up its finances and shrink a $115 billion debt load. Culp, who took over in October, has been shedding assets – including a stake in Baker Hughes, which raised $3.8 billion – and tightening spending as part of the effort.
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GE had intended to hire as many as 800 workers in the Boston-area, but will now have 250 employees at the smaller facility.
