GE Appliance Holdings Inc. will cut its workforce by 1,300 jobs as the company tries to reduce its debt by $1.3 billion and turn around a struggling business.
The company said Wednesday that it will sell its appliance business, including appliances and cooling equipment, to a Chinese buyer that is expected to be able to take over the business.GE said it will also buy back more than $1 billion of debt from Chinese lenders, including a $2.6 billion deal in March for an advanced manufacturing facility in China.
The announcement came as the U.S. government and Congress consider whether to approve GE’s $26.6-billion deal to sell a major stake in its GE Appliant business to Chinese state-owned enterprise (SOE) group SOE China Holding Group.
The deal is expected for a reported $1 trillion.
The company has been struggling for years, losing market share to its competitors.
It had $1,400 billion in debt as of December 31.
The GE Applier group, which makes appliances, cooling equipment and other industrial products, has about 2,600 employees and is the largest supplier of appliances to the U to the United States.
It also provides heating and cooling to more than 5,600 companies.
The latest GE announcement comes amid an escalating trade war between China and the United State.
The two countries have been locked in a decades-long dispute over China’s growing economic clout in the South China Sea.
China is trying to buy a slice of GE Appliers market share and is pressuring the U, a NATO ally, to do more to prevent a repeat of the 1989-1992 Tiananmen Square protests in Beijing that resulted in the deaths of thousands of protesters.
The U.s. and China have a long history of trade disputes.
President-elect Donald Trump has signaled he may not take a tough stance on trade during his administration.
He has also suggested China could be a bigger threat to U.a.l. trade.
The new U.N. trade commissioner is expected on Thursday to issue his first trade report.
The government has said that if China wants to buy up GE Applies shares, it would have to negotiate a deal with the U., which would likely include the purchase of the company.