Schenectady

General Electric Co. is sticking by its roots, and that's a good thing for its 4,000 workers in Schenectady that work in its GE Power and GE Renewable Energy divisions.

GE announced Tuesday it planned to spin off GE Healthcare as a standalone company, retaining a 20 percent share.

CEO John Flannery has been telling shareholders for months now that he might make such a move to spin off one or more units in order to make the company more focused and its overall operations less costly by significantly reducing debt.

And by keeping aviation, which makes aircraft engines, the company is basically focusing on GE's traditional technology that also includes its gas and steam turbines that are made by its GE Power unit, which is based in Schenectady, GE's historic home dating back to the days of Thomas Edison.

GE also has large portions of both markets. Two thirds of the airline departures in the world use GE engines, and GE equipment powers one third of all the electricity made in the world.

"Today marks an important milestone in GE's history," Flannery said in a statement. "We are aggressively driving forward as an aviation, power and renewable energy company - three highly complementary businesses poised for future growth. We will continue to improve our operations and balance sheet as we make GE simpler and stronger."

In addition to the 4,000 workers in Schenectady, GE employs 2,000 at its research lab in Niskayuna. It also operates a factory in North Greenbush that makes digital x-ray machines that will be part of the spin-off.

GE also said it would also completely divest from its oil and gas company that it has a stake in, Baker Hughes.