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Moving Company Headquarters
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Moving Company Headquarters

One of the most successful companies has been General Electric.

Like all gigantic companies – GE is being radically transformed with fundamental changes in their business strategy.  For example, GE appliances have been recently spun off and sold as well as a multitude of other subsidiaries.  Their legendary CEO, Jack Welch often commented that if you are not number one or do not have a plan to become number one – then there is no reason to keep the business.

Their new CEO, Jeffrey Immelt made the decision to move company headquarters from Fairfield, Connecticut, to Boston.  His explanation for doing so raised some eyebrows.  In the company’s annual report to shareholders, he describes that the decision to move was premised on the desire to embark on a “simplification journey” that reflects a reduced importance of headquarters, with reduced corporate costs and heightened focus on the company’s various (and increasingly integrated) businesses.

He added that in moving to Boston, the company plans to take advantage of the area’s vibrant tech scene and robust educational environment.

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His most surprising comment was when he declared that “we must be in the world of ideas, so that we remain contemporary and paranoid.”

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