With stock down 53 percent year on year, GE axes its CEO John Flannery

GE shares surged 16 percent in premarket trading on news the board had ousted CEO John Flannery.
by Associated Press / / Source: Associated Press
Image: The General Electric logo is displayed at the top of their Global Operations Center in the Banks development of downtown Cincinnati
The General Electric logo is displayed at the top of their Global Operations Center in the Banks development of downtown Cincinnati.John Minchillo / AP file

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After less than two years and a precipitous decline in the share price at General Electric, John Flannery is being ousted as chairman and CEO.

Flannery took over for longtime CEO Jeff Immelt in June 2017 with the company trying to re-establish its industrial roots, albeit a high-tech version of itself.

However, as Flannery has restructured the multinational conglomerate, its value has dipped below $100 billion and shares are down more than 53 percent year on year.

An original member of the Dow Jones Industrial Average, GE was kicked off the index in June, where it had traded since 1907. Walgreens took its spot.

GE warned Monday that it will miss its profit forecasts this year and it's taking a $23 billion charge.

The company said Monday that H. Lawrence Culp Jr. will take over as chairman and CEO immediately.

Shares of General Electric, based in Boston, surged 16 percent before the opening bell.

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