General Electric to Pay 50 Million Euros After Failing to Create Jobs Promised in Alstom Energy Acquisition
General Electric (GE) will put 50 million euros ($57.1 million) into a publicly monitored bank after the number of jobs it added after acquiring Alstom’s energy division three years ago fell short of promises, the French Ministry for the Economy and Finance said in a statement Tuesday.
Bruno Le Maire, the minister of economy and finance, and Agnes Pannier-Runacher, the secretary of state to the minister, said in the statement that GE recruited 3,000 people in the past three years, resulting in a creation of only 25 net new jobs by the end of 2018, badly missing on the commitment it made to create 1,000 jobs when it bought Alstom’s energy segment in 2015.
The evolution of the energy markets has “strongly” limited the gas turbine market, the ministry said.
GE will create a reindustrialization fund of 50 million euros that will be held in a the Caisse des Depots et Consignations, a public financial institution, where it will be managed by a committee chaired by an industry expert, representatives of the company and city and state officials.
The ministry said General Electric signaled a commitment for long-term development in France, particularly in the field of renewable energy, including an offshore wind project.