General Electric, once a household name in American homes, has undergone a dramatic transformation that culminated in its division into three independent entities. Founded in 1892 by Thomas Edison, the company reached its peak under former CEO Jack Welch but has since faced financial difficulties and criticism.
To address its money problems, General Electric resorted to share buybacks and dividends in a bid to sustain the value of its shares. However, this tactic proved unsuccessful, leading to its removal from the Dow Jones Industrial Average in 2018 after being a member since 1907.
The company sold off various divisions, including NBC, home appliances, and its iconic light bulb division, in an effort to restructure. In 2020, it divested its aircraft leasing business and powerful financial division, GE Capital. In November 2021, General Electric announced its plans to split into GE Healthcare, GE Aerospace, and GE Vernova, with GE Healthcare already going public in January 2023.
GE Aerospace, once a key division known for innovation in the aerospace industry, has now emerged as an independent entity following the dissolution of General Electric. The company’s focus on technological development and commitment to innovation in the aeronautical sector remain strong.
Today marks a significant shift for General Electric as its three independent entities move forward. The launch of GE Aerospace signals the company’s financial and operational transformation after years of restructuring.