General Electric has dumped its CEO in a bid to get out of a slump.
After barely a year on the job, John Flannery has been ousted and replaced by former Danaher CEO Lawrence Culp, who joined GE’s board in April. GE also installed Thomas Horton, the former CEO of American Airlines, as its lead director, CNN reports.
GE announced the changes early Monday, undoubtedly in a bid to soften the blow to investors when it also revealed more bleak financial news: Its 2018 profit will most likely fall short because of “weaker performance” at its struggling power division.
Flannery had hoped to turn the flailing company around by focusing on aviation and power, but the makeover failed to instill confidence in investors in the short time it had to work. Investors were reportedly frustrated by how long it was all taking in the face of mounting debt and profit shrinkage.
Adding insult to injury for Flannery, GE shares soared more than 13% after the news broke about his firing.