General Electric’s chief executive (NYSE: GE) has been sacked after just 14 months in the role.
John Flannery will be replaced by General Electric board member, Larry Culp, immediately as the group struggles to return to profit.
Culp said that the group “remains a fundamentally strong company with great businesses and tremendous talent”.
“We have a lot of work ahead of us to unlock the value of General Electrics. I am excited to get to work,” Culp added.
Flannery joined the group less than two years ago and announced a turnaround plan that aimed to simplify the business model of the group.
Since he became chief executive, shares have halved.
On the news of his departure, shares in the group triggered an eight percent share price rally.
General Electrics has also appointed the former American Airlines chief executive Thomas Horton as lead director on the board.
In June, General Electric lost its place on the Dow Jones Industrial Average.
The group also faced fines after pledging but failing to produce 1,000 new jobs by the end of the year.
France’s Labour minister Muriel Penicaud said General Electric would face a €50,000 penalty for every job not created.
The government spokesman Benjamin Griveaux, said: “Sanctions must set an example. €50,000 should be applied by the end of the year if GE does not stick to its commitments.”
