FILE PHOTO: The General Electric logo is pictured on the General Electric offshore wind turbine plant in Montoir-de-Bretagne, near Saint-Nazaire, western France, November 21, 2016. REUTERS/Stephane Mahe/File Photo

General Electric is cutting 12,000 jobs as its new CEO tries to turn the troubled company around.

The jobs are in the electrical power division, which makes the giant turbines and generators that the company estimates provide about one-third of the electricity produced around the world.

GE (GE) is by far the worst-performing stock in the Dow this year, down 44%, and CEO John Flannery, who took over in August, has been trying to slash costs.

The company says the job cuts will mostly be outside the United States. The power division’s headcount will be reduced about 18%. About 295,000 people worked for GE overall at the end of last year, but the company has cut jobs and costs throughout this year. It hopes to reduce costs by $1 billion next year.

Russell Stokes, president and CEO of the power division, called the cuts “painful but necessary.”

Competition from renewable energy is putting pressure on the traditional power business. GE said disruption in the industry has reduced the need for its products by 40%. Just last month, the German industrial conglomerate Siemens (SIEGY) announced plans to cut 6,900 jobs, mostly in its power division.

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SOURCE: Chris Isidore