BREAKING NEWS

BREAKING NEWS

General Electric scraps plan for 12-storey Boston headquarters

General Electric scraps plan for 12-storey Boston headquarters
FILE PHOTO: The logo of U.S. conglomerate General Electric is pictured at the company's site of its energy branch in Belfort, France, February 5, 2019. REUTERS/Vincent Kessler -
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VINCENT KESSLER(Reuters)
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By Alwyn Scott

NEW YORK (Reuters) - General Electric Co scrapped plans for a 12-storey headquarters office tower on Boston's waterfront on Thursday, choosing instead to lease smaller buildings nearby and return $87 million (68 million pounds) in incentives to the state.

The move is another side-effect of the 127-year-old company's decision last year to break up and sell major businesses since it will no longer need the 800-person campus it envisioned.

GE's headquarters now will have about 250 employees in two brick buildings that once housed the Necco Wafer candy company. GE will lease the buildings, about 95,000 sq feet, after selling them and adjacent land for the tower jointly with the state to recoup the incentive money.

GE said last year it will pare down making power plants, jet engines and renewable energy systems. In August 2017 GE said it was delaying the office tower. It announced plans to move to Boston in 2016, and its current headquarters are nearby.

"We are looking forward to moving into our permanent headquarters space in the refurbished Necco brick buildings later this year," GE said in a statement.

"While changes in the company's portfolio and operating model will lead to a smaller corporate headquarters, we are fully committed to Boston and proud to call it home."

(Reporting by Alwyn Scott; Editing by Sonya Hepinstall)

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