GE Digital intends to continue serving customers in the power and aviation businesses
However, the digital unit has been seeing slow sales, and in the most recent quarter, it saw a drop in new orders. The unit faces tough competition from major technology companies like IBM that provide similar services to the industrial sector. GE invested billions of dollars and created its own operating system, software and other digital tools to help its own businesses before it started selling these applications to outside customers.
Due to difficulties in running this huge business efficiently, CEO John Flannery reduced the scale of operations by catering to a smaller customer base and by eliminating jobs. GE Digital intends to continue serving customers in some of its businesses such as power and aviation.
GE Digital is the latest business that GE is offloading as part of its restructuring efforts. The company had announced the spin-off of its healthcare division GE Healthcare, the planned divestiture of its stake in Baker Hughes and the sale of its transportation unit on previous occasions. GE wants to narrow its focus to aviation, power and renewable energy. Although GE continues to get slimmer, its stock price is still struggling to see a lift.