General Electric shutting East Houston manufacturing operations

GE said it will keep the plant open to house a unit that services turbines, and maintain some office jobs for engineering and projects operations. About 500 people work at the facility, according to the most recent estimates, but GE declined to disclose how many worked specifically for the manufacturing operations. GE officials said some of the workers could be transferred to other plants, but again declined to provide numbers.

GE sends its gas turbines to the Channelview plant, where they’re built into packaging as part of the manufacturing process.

GE officials said the  extended downturn in the energy industry has hurt demand for the small turbines and generators used by the oil and gas industry for exploration and production. This is not the first time GE has cut jobs at the the plant; last year, GE said it would cut its Channelview workforce by about 100 jobs, shrinking the workforce to 500 from 600.

“The decision to restructure is based on the current environment as many oil and gas customers continue to delay projects and decisions and we're experiencing a dramatic drop-off in orders commitments for this year,” GE said in a statement. “The restructuring is in no way a negative reflection of our workforce.”

GE said it is moving some of the work to other locations, which it did not disclose.

The energy downturn has affected other GE operations in Texas. Reduced demand for oil and gas equipment led GE to cut about 1,000 jobs  at its facilities in Lufkin, about 120 miles northeast of Houston. The reductions followed the $3.3 billion acquisition of oil field service company Lufkin Industries in 2013. Lufkin had as many as 4,400 workers when it was bought by GE.