That became clear on Monday as the board of the once-mammoth industrial conglomerate ousted Flannery - just 14 months after he took the reins from longtime CEO Jeff Immelt. With a market capitalization below US$100 billion as of Friday, GE was worth less than a fifth of its peak value a generation ago.
The company said it would fall short of its previously indicated guidance for free cash flow and earnings per share for 2018 due to weakness in its power business.
Flannery will be replaced by H. Lawrence Culp Jr, who had the unanimous support of the board, the company said.
GE said the power division's goodwill balance is about $23 billion and the impairment charge would eliminate most of it.
Culp served as chief executive officer and president of Danaher Corporation from 2000 to 2014.
Culp's time as CEO of Danaher was marked by expanding the reach of the company into fields as diverse as dental imaging and water filtration.
Analysts noted that despite the seemingly good news, GE still has its work cut out for it. "The changes that have taken place since Flannery's appointment have been relatively drastic with little financial results to show". Flannery has spent three decades at GE, running its healthcare business for about three years before taking the top job. The company has been forced to sell off divisions and lay off employees, a process that accelerated under Flannery.
"During his tenure he led the highly successful transformation of the company from an industrial manufacturer into a leading science and technology company", the statement said.
During Flannery's tenure, GE shares tumbled 61 percent - while the S&P 500 gained 20 percent. The stock was an original member of the Dow Jones Industrial Average in 1896, but was unceremoniously removed in June. The problems deepened in the past two years as GE faced cash-flow shortfalls, slumping demand and investigations by the U.S. Securities and Exchange Commission.
"We fully expect him to do well, positive for long term investor confidence, but which we believe also means a proper reset to earnings and FCF construct and potential recapitalization to de-risk the balance sheet, all of which represent the most important 'shoes to drop, '" he said.
GE has been dogged by problems at its power division, which makes machinery for power plants and has struggled amid tepid demand. GE shares only recently fell below the $US100 billion market cap threshold for the first time since the start of the 9-1/2-year bull market, back in March 2009. "However, we believe that CEO Culp will, at a minimum, re-baseline the company, drive execution and make long-term decisions that benefit the company and shareholders".