General Electric Completes Split: Introducing GE Aerospace and GE Vernova

General Electric’s journey of divestitures and restructuring culminates as it splits into two separate entities: GE Aerospace and GE Vernova. The former will specialize in building jet engines, while the latter will focus on providing electrical power systems. This split marks the end of an era for the industrial giant, once renowned for its diverse offerings ranging from household appliances to television sets and even mortgages. Founded in 1892 by Thomas Edison and propelled to unprecedented heights under CEO Jack Welch, General Electric struggled in the 21st century, burdened by debt from ill-timed deals. Larry Culp, appointed CEO in 2018, spearheaded efforts to streamline the company, shedding divisions such as NBC and its appliance business. Under Culp’s leadership, GE accelerated divestitures, selling off iconic assets like its light bulb unit and aircraft leasing business. The split into three separate companies, with GE Healthcare already spun off, signifies a strategic shift towards specialized focus areas. Despite challenges, Culp’s initiatives have boosted investor confidence, with GE’s shares rebounding significantly in recent years.

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