General Electric CEO Immelt to step down

US industrial conglomerate General Electric will have a new CEO in August, as current boss Jeffrey Immelt is set to step down after 16 years in charge.

Immelt will leave the position of chairman and chief executive on 31 December, to be replaced by current head of healthcare John Flannery, who will take up the top post as of 1 August.

Immelt oversaw a period of consolidation for GE over the best part of two decades, following 20 years of significant growth under the leadership of Jack Welch.

GE has struggled somewhat in the stock market in recent times, with its stock falling 8% year-to-date, although its share price was boosted almost 4% in early trading on Wall Street on Monday following news of the change.

The company has agreed to make cuts worth around $2bn as it faces pressure from investors over its finances.

Immelt said on Monday that he believed Flannery was the right person to step into the position.

"John is the right person to lead GE today," Immelt said. "He has broad experience across multiple businesses, cycles and geographies. He has a track record of success and led one of our most essential businesses. Most important are his strong leadership traits - good judgment, resilience, a learner, team builder and a tough-minded individual and competitor.”

Flannery described the promotion as "the greatest honor" of his career and promised to lead GE into a new era.

"I am privileged to have spent the last 16 years at the company working for Jeff, one of the greatest business leaders of our time...In the next few months, my focus will be on listening to investors, customers and employees to determine the next steps for GE," Flannery said.