GE is even returning $ 87 million to Massachusetts, paying back to the state the bulk of the $ 120 million incentive incentive that had prompted the historic society to leave its Connecticut home in August 2016.
This change reflects everything that has changed at GE since then.
GE's share price, despite rising in 2019, has fallen 60% over the past three years. His dividend has been reduced to a penny.
In other words, the more modest Boston headquarters reflects the reality.
"While the changes in the company's portfolio and operating model will reduce the number of head offices, we are fully committed to Boston and proud to call it home," said Ann Klee, Vice President of Business Development. Boston operations at GE, in a statement.
GE declined to say how much money he would save by reducing his ambitions in Boston. The company plans to use the proceeds of the sale to repay the state. A spokesman for GE said the site has attracted a lot of interest in recent months and that the sale would likely exceed the $ 87 million return in Massachusetts.
The centerpiece of Boston's plan was to build a 12-story office tower on a vacant 300,000-square-foot parcel that would be ready by 2021.
GE and the state have now reached an agreement to sell the entire property, including two state-owned brick buildings, which once housed a confectionery factory. GE is renovating these buildings, which are the responsibility of the state, as part of the $ 120 million incentive program.
GE plans to lease the brick buildings and use the space to house the company's senior management and approximately 250 employees. This is a significant drop from the original plan to accommodate about 800 employees in Boston. The move is scheduled for August.
Many of the employees who were to be based in Boston will remain at the divisional headquarters.
In a statement, the Massachusetts governor's office, Charlie Baker, said the administration was "proud of what General Electric has chosen to move the company's global headquarters to Massachusetts and looks forward to the continued contribution. from GE to the growing innovation economy ".