The NYSE listed giant said the jobs cuts are part of its plan to reduce costs in the Power division by US$3.5bn in 2017 and 2018.
GE added that the cost cutting plans are driven by "challenges in the power market worldwide", as traditional power markets, including gas and coal, have softened.
GE Power’s chief executive Russell Stokes said: "This decision was painful but necessary for GE Power to respond to the disruption in the power market, which is driving significantly lower volumes in products and services.”
He added: "We expect market challenges to continue, but this plan will position us for 2019 and beyond."
In pre-market New York trading, GE shares were 0.2% higher at US$17.70.