National News

GE Transportation Cutting Up to 575 Jobs, Ending Locomotive Production at Lawrence Park Plant

Posted July 27

— GE Transportation will cut up to 575 union jobs and end locomotive production at its Lawrence Park plant, the company told Erie News Now Thursday.

2,000 workers total would be left if all the cuts go through, according to the company. They include 900 union and 1,100 salary workers. The cuts are subject to decision bargaining with the union, which must start within 60 days.

Half of the union workers are eligible for early retirement, GE representatives said.

All locomotive production work would move to Forth Worth, Texas by the end of 2018, the company said. Lawrence Park workers would provide design, engineering and development services to make prototypes and component products.

The cuts are being made because locomotive production is down significantly, and the mining industry is soft as well, according to GE.

The announcement comes nearly 18 months after the company began eliminating 1,500 jobs.

Tough Second Quarter for GE Transportation

The news comes amid a tough second quarter for GE Transportation.

GE said it shipped 120 locomotives in the quarter compared to 222 a year ago.

International shipments partly offset North American shipments, which were down 77 percent.

Operating profit in the quarter is down 26 percent.

GE Transportation officials said the North American locomotive market will continue to be challenging in 2017 and 2018, with 2017 locomotive shipments off by 50%.

GE is focused on growing internationally. It recently announced a $575 million win in Egypt for 100 locomotives plus services. The company expects that to show in order numbers for the third quarter.

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