FILE PHOTO: General Electric logo depicted on the General Electric offshore wind turbine factory in Montoir-de-Brittany, near Saint Nazaire, West France, November 21[ads1], 2016. REUTERS / Stephane Mahe / File Photo
NEW YORK (Reuters ) – General Electric Co set up plans for a 12-storey headquarters in Boston on Thursday, choosing instead to rent smaller buildings nearby and return $ 87 million in government incentives.
The movement is another side effect of the 127-year-old company's decision last year to break up and sell big businesses since it will no longer need the 800-person campus it predicted.
GE's headquarters will now have around 250 employees in two brick buildings once home to the Necco Wafer candy company. GE will rent buildings, approximately 95,000 square meters, after selling them and adjacent land for the tower jointly with the state to retrieve the incentive money.
Last year, GE said it was going to cut down on making power plants, jet engines, and renewable energy systems. In August 2017, GE said it was delaying the office tower. It announced plans to move to Boston in 2016, and current headquarters are nearby.
"We are looking forward to moving into our permanent headquarters in the renovated Necco brick buildings later this year, GE says in a statement.
" While changes in the company's portfolio and operating model will lead to a smaller headquarters, we fully committed to Boston and proud to call home. "
Reporting Alwyn Scott; Editing Sonya Hepinstall