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Flannery's departure calls into question plans to reorganize one
of America's best-known corporations. He had promised to revamp
GE into a leaner company by cutting jobs and shedding several
businesses.
The company's shares rose 15 percent before the opening bell.
The stock has more than halved since Flannery took the top job
in August last year.
Flannery's departure from GE is driven by "slow pace of change"
under his leadership, CNBC reported, citing a text from a
source.
Flannery will be replaced by H. Lawrence Culp Jr., who had the
unanimous support of the board, the company said.
Culp, known for turning around Danaher, was added to GE's board
in February.
The company's power business, hit by problems with its latest
generation of gas turbines, posted a $10 billion loss last year.
The company said it would fall short of its previously indicated
guidance for free cash flow and earnings per share for 2018 due
to weakness in its power business.
GE Power's current goodwill balance is about $23 billion and the
goodwill impairment charge is likely to constitute substantially
all of this balance, the company said.
(Reporting by Arunima Banerjee and Sweta Singh in Bengaluru;
Editing by Saumyadeb Chakrabarty)
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