Jack Welch, the American businessman who expanded General Electric to become world’s biggest company, has died at the age of 84.
Welch was known for enforcing a disciplinarian management style that earned him acclaim within the business world and made him a bestselling author, although GE’s subsequent struggles complicated his legacy.
“Today is a sad day for the entire GE family,” said Larry Culp, the company’s chairman and chief executive. “Jack was larger than life and the heart of GE for half a century. He reshaped the face of our company and the business world.”
He added: “When I last saw him, what I remember most vividly was when he asked me: ‘So how exactly are you running the company?’ Jack was still in it – committed to GE’s success.”
Donald Trump tweeted praise of Welch, saying he was a “friend and supporter”. Welch was a committed Republican.
Trump wrote: “We made wonderful deals together. He will never be forgotten. My warmest sympathies to his wonderful wife & family!”
Jack Welch, former Chairman and CEO of GE, a business legend, has died. There was no corporate leader like “neutron” Jack. He was my friend and supporter. We made wonderful deals together. He will never be forgotten. My warmest sympathies to his wonderful wife & family!
— Donald J. Trump (@realDonaldTrump) March 2, 2020
John Francis Welch Jr was born in Massachusetts in 1935 to Irish American parents. His father was a railway conductor.
He completed a degree in chemical engineering from the University of Massachusetts and a PhD at the University of Illinois’s department of chemical and biomolecular engineering, and then joined GE’s plastics division in 1960. He joined the management ranks in 1972 before ascending to chairman and chief executive in 1981.
GE’s market capitalisation expanded from $13bn (£10.2bn) to more than $400bn during his reign throughout the 1980s and the 1990s. In that time he cut tens of thousands of jobs, earning him the moniker “Neutron Jack”. He famously advocated regularly firing the worst-performing 10% of his managers.
Welch became a hero of American business, with Fortune magazine in 1999 naming him the “manager of the century”. He retired in 2001 when GE was near the height of its powers, with major businesses in entertainment and financial services that far expanded the company beyond its origins in industry led by Thomas Edison.
On the back of his business success, Welch co-authored books including Jack: Straight from the Gut and Winning, which he co-wrote with his third wife, Suzy.
However, the financial crisis left GE dangerously exposed, raising questions over Welch’s legacy. The GE Capital arm that he had built up became a particular weight on the company.
After leaving GE, Welch became a business consultant and media commentator in newspapers and on television.
