Gov. Gina M. Raimondo last year heralded the arrival of GE Digital, a technology division of General Electric Co., marking a triumphant moment in her economic-development strategy to lure big-name companies to Rhode Island.
At the time, the state said the company would add 100 jobs in the near term with the possibility of future expansion.
As of June 19, more than a year since the original announcement, GE Digital employed 46 people at its Providence offices. And while the company is on track to grow jobs at a pace agreed upon with the state, reaching 100 jobs is no longer talked about in the near term.
“[Fifty to] 100 jobs will be created in Providence over the next few years,” wrote Amy Sarosiek, GE spokeswoman, in an email.
Asked pointedly whether the company was committed to reaching the 100 jobs, Sarosiek replied, “As of next week, we will be over 50 people.”
According to an agreement with R.I. Commerce Corp., the company must reach 50 jobs by July 1 to qualify for tax credits that could total about $248,200. The credit is based on income tax made through the jobs created.
Benchmarks to follow include 75 jobs by Jan. 1, 2018, and 100 jobs by Jan. 1, 2019. In all, the company stands to receive tax credits for up to 300 jobs by 2021.
A spokesman said Commerce was thus far satisfied with the job growth at GE. Raimondo told a group of business owners in February she believed GE Digital could more than quadruple its workforce in coming years.
“I completely believe they will have 400 to 500 employees in Providence over the next several years,” Raimondo said, speaking at a BNY Mellon Wealth Management event.
Publicly, however, GE has never said the jobs are a foregone conclusion. Last June, Jeffrey S. Bornstein, chief financial officer and newly appointed vice chair at GE, told reporters the industry giant would take a wait-and-see approach to determine whether its burgeoning tech division could successfully grow in the Ocean State.
GE, based in Boston, is also going through a shakeup in leadership that has raised questions about how the company will weigh business priorities moving forward.
Jeffrey Immelt, a strong proponent of the digital effort, announced earlier this month he would step down as chairman and CEO on Dec. 31. The announcement came after months of pressure from activist investor Trian Fund Management, which called upon the company to improve performance and cut costs.
John Flannery, a company veteran of 30 years, will take over at the helm. He most recently served as CEO of GE Healthcare.
When asked whether the leadership changes would have any impact on the effort to grow jobs locally, Sarosiek provided some reassurance, but little specificity.
“GE remains committed to its digital industrial strategy,” she wrote.
