The downsizing from a 12-story tower to two renovated warehouses marks another retreat from the ambitions of former CEO Jeff Immelt.
The removal of John Flannery after a year on the job reflects "the board's frustration with the slow pace of change under his leadership.”
A possible buyer is hedge fund Elliott Management, which made a hostile takeover offer last month for the healthcare technology company.
GE's new CEO tightens reins as cash-flow projection plummets to $7 billion.
The sale of the underperforming business to Swiss firm ABB continues former CEO Jeff Immelt's strategy of fostering growth by streamlining GE's operations.
Analysts said the underlying quality of earnings was mixed, "with the beat driven almost entirely by lower corporate expense and restructuring."
Industrial cash flow came in low, disappointing investors, but GE still expects to hit $12 billion to $14 billion for the year.
“We’ve made the company simpler. We’ve made the company deeper," CEO Jeff Immelt says.
The companies believe the combined entity will be positioned to benefit from the expected recovery in oil prices.
The company is facing challenges in its oil and gas business but renewable energy revenues grew 62%.
Falling oil prices drove down profits in most of the industrial businesses but GE reaffirmed its 2016 outlook.
The exits of targeted GE Capital businesses should release about $35 billion in dividends that are expected to be allocated to the buyback.
