General Electric said on Tuesday that it planned to spin off its enormous health care business as part of a sweeping reorganization of the embattled industrial conglomerate, betting that shrinking itself will reverse its troubles.
The announcement on Tuesday concludes a long review by G.E.’s management, including the new chief executive, John Flannery, into the once mighty corporate icon, which over the decades has collected an unwieldy assortment of businesses.
As part of the reorganization, G.E. plans to focus on its aviation, power and renewable energy divisions. It will spin off the health care business into a separate company and will also sell its stake in Baker Hughes, a major producer of oil field equipment.