General Electric Company (GE), an iconic American multinational conglomerate, boasts a rich and transformative history. Incorporated in New York State and presently headquartered in Boston, Massachusetts, GE has long been a titan of industry, synonymous with innovation and broad-ranging industrial prowess.

For many decades leading up to 2021, GE’s operational footprint was remarkably expansive, touching virtually every aspect of modern life. The company was deeply embedded in critical sectors such as aviation, power generation, renewable energy solutions, and the nascent digital industry. Its portfolio also extended to additive manufacturing, locomotives, and even significant ventures in venture capital and finance, solidifying its status as a truly diversified global powerhouse. However, in a strategic pivot reflecting evolving market dynamics and a drive for sharper focus, GE began divesting from several of these areas. As of early 2021, its primary business segments have been streamlined to aviation, power, renewable energy, and digital industry.

Financially, GE has navigated a path marked by both impressive highs and challenging troughs. In 2020, despite ongoing transformations, the company still maintained a significant market presence, ranking as the 33rd largest firm in the United States by gross revenue on the prestigious Fortune 500 list. Earlier, in 2011, GE was celebrated among the Fortune 20, holding the distinguished position of the 14th most profitable company. Yet, this period of robust profitability proved difficult to sustain. The subsequent years saw GE face considerable headwinds, leading to a severe underperformance against the broader market—by approximately 75%—as its profitability saw a substantial and widely publicized decline.

Beyond its industrial and financial ventures, GE has historically fostered a strong culture of scientific inquiry and groundbreaking innovation. This commitment to pioneering research is notably underscored by the recognition of two of its dedicated employees with the ultimate scientific accolade: the Nobel Prize. Irving Langmuir received this esteemed honor in 1932 for his work in surface chemistry, followed by Ivar Giaever in 1973 for his discoveries concerning tunneling phenomena in superconductors, highlighting GE's enduring contributions to fundamental scientific advancements.

In a landmark move that will fundamentally reshape its future, General Electric announced on November 9, 2021, its ambitious plan to divide into three distinct, publicly traded companies. This strategic transformation aims to unlock greater value for shareholders and foster more agile, focused operations by allowing each new entity to concentrate on its core strengths. These specialized companies will focus respectively on: aviation, healthcare, and an integrated energy business which will encompass renewable energy, power, and digital solutions. The first significant separation, the spin-off of the healthcare division, is strategically planned for 2023. This will then be followed by the spin-off of the comprehensive energy division in 2024, marking a new chapter for the venerable conglomerate.

Frequently Asked Questions about General Electric (GE)

What is General Electric (GE)?

General Electric Company (GE) is an American multinational conglomerate, incorporated in New York State and currently headquartered in Boston, Massachusetts, known for its long history in diverse industrial sectors.

What industries did GE operate in historically?

Until 2021, GE had a vast operational scope including aviation, power, renewable energy, digital industry, additive manufacturing, locomotives, venture capital, and finance. It has since divested from many of these.

What are GE's primary business segments now?

Following recent divestments, GE's core focus is primarily on four segments: aviation, power, renewable energy, and digital industry.

Has GE had Nobel Prize winners among its employees?

Yes, two GE employees have been awarded the Nobel Prize: Irving Langmuir in 1932 and Ivar Giaever in 1973, recognizing their significant scientific contributions while at the company.

What is the future plan for General Electric?

On November 9, 2021, GE announced plans to divide into three independent public companies focusing on aviation, healthcare, and an integrated energy business (renewable energy, power, and digital). The healthcare spin-off is slated for 2023, followed by the energy spin-off in 2024.

How has GE's financial performance changed over time?

GE was the 14th most profitable company in the Fortune 20 in 2011 but later severely underperformed the market due to collapsing profitability. In 2020, it ranked 33rd on the Fortune 500 by gross revenue, indicating a shift in its financial standing over the decade.