NEW YORK, NY - FEBRUARY 14: A view of Gantry Plaza State Park along the waterfront in Long Island City, February 14, 2019 in the Queens borough of New York City. Amazon said on Thursday that they are cancelling plans to build a corporate headquarters in Long Island City, Queens after coming under harsh opposition from some local lawmakers and residents. (Photo by Drew Angerer/Getty Images)
NEW YORK, NY - FEBRUARY 14: A view of Gantry Plaza State Park along the waterfront in Long Island City, February 14, 2019 in the Queens borough of New York City. Amazon said on Thursday that they are cancelling plans to build a corporate headquarters in Long Island City, Queens after coming under harsh opposition from some local lawmakers and residents. (Photo by Drew Angerer/Getty Images)
PHOTO: Drew Angerer/Getty Images North America/Getty Images
Now playing
01:18
Amazon scraps plans for NYC HQ
Passengers look out at American Airlines flight 718, a Boeing 737 Max, parked at its gate at Miami International Airport as people load for the flight to New York on December 29, 2020 in Miami, Florida. The Boeing 737 Max flew its first commercial flight since the aircraft was allowed to return to service nearly two years after being grounded worldwide following a pair of separate crashes. (Photo by Joe Raedle/Getty Images)
Passengers look out at American Airlines flight 718, a Boeing 737 Max, parked at its gate at Miami International Airport as people load for the flight to New York on December 29, 2020 in Miami, Florida. The Boeing 737 Max flew its first commercial flight since the aircraft was allowed to return to service nearly two years after being grounded worldwide following a pair of separate crashes. (Photo by Joe Raedle/Getty Images)
PHOTO: Joe Raedle/Getty Images
Now playing
03:15
Airlines & TSA boost security ahead of Inauguration
Philanthropist Chief Executive Officer of Las Vegas Sands Sheldon Adelson listens to US President Donald Trump address to the Israeli American Council National Summit 2019 at the Diplomat Beach Resort in Hollywood, Florida on December 7, 2019. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)
Philanthropist Chief Executive Officer of Las Vegas Sands Sheldon Adelson listens to US President Donald Trump address to the Israeli American Council National Summit 2019 at the Diplomat Beach Resort in Hollywood, Florida on December 7, 2019. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)
PHOTO: Mandel Ngan/AFP/Getty Images
Now playing
03:14
Major GOP donor and casino magnate Sheldon Adelson dies
Democratic presidential candidate and former US Vice President Joe Biden speaks on the state of the US economy on September 4, 2020, in Wilmington, Delaware. (Photo by JIM WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images)
Democratic presidential candidate and former US Vice President Joe Biden speaks on the state of the US economy on September 4, 2020, in Wilmington, Delaware. (Photo by JIM WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images)
PHOTO: JIM WATSON/AFP/Getty Images
Now playing
02:02
Why Wall Street is hopeful about Biden despite economic challenges
Now playing
05:39
Ben & Jerry's calls for Trump's removal
This illustration picture shows the social media website from Parler displayed on a computer screen in Arlington, Virginia on July 2, 2020. - Amid rising turmoil in social media, recently formed social network Parler is gaining with prominent political conservatives who claim their voices are being silenced by Silicon Valley giants. Parler, founded in Nevada in 2018, bills itself as an alternative to "ideological suppression" at other social networks. (Photo by Olivier Douliery/AFP/Getty Images)
This illustration picture shows the social media website from Parler displayed on a computer screen in Arlington, Virginia on July 2, 2020. - Amid rising turmoil in social media, recently formed social network Parler is gaining with prominent political conservatives who claim their voices are being silenced by Silicon Valley giants. Parler, founded in Nevada in 2018, bills itself as an alternative to "ideological suppression" at other social networks. (Photo by Olivier Douliery/AFP/Getty Images)
PHOTO: Olivier Douliery/AFP/Getty Images
Now playing
03:49
Parler sues Amazon in response to being deplatformed
Panasonic
Panasonic's Augmented Reality Heads-up Display
PHOTO: Panasonic USA
Now playing
01:06
This tech gives drivers directions on the road in front of them
PHOTO: Wimkin
Now playing
03:18
The online warning signs of the violent Capitol siege
PHOTO: Twitter
Now playing
02:39
Twitter permanently suspends Donald Trump from platform
PHOTO: CNN
Now playing
03:56
'What are we supposed to do?': Rioter speaks to CNN reporter
President Donald Trump arrives to speak at a rally protesting the electoral college certification of Joe Biden as President, Wednesday, Jan. 6, 2021, in Washington. (AP Photo/Evan Vucci)
President Donald Trump arrives to speak at a rally protesting the electoral college certification of Joe Biden as President, Wednesday, Jan. 6, 2021, in Washington. (AP Photo/Evan Vucci)
PHOTO: Evan Vucci/AP
Now playing
01:38
Facebook blocks Trump through end of presidency
PHOTO: CNN
Now playing
02:56
CNN speaks to Trump supporters about Trump's election lies
NEW YORK, NY - JUNE 3: The Google logo adorns the outside of their NYC office Google Building 8510 at 85 10th Ave on June 3, 2019 in New York City. Shares of Google parent company Alphabet were down over six percent on Monday, following news reports that the U.S. Department of Justice is preparing to launch an anti-trust investigation aimed at Google. (Photo by Drew Angerer/Getty Images)
NEW YORK, NY - JUNE 3: The Google logo adorns the outside of their NYC office Google Building 8510 at 85 10th Ave on June 3, 2019 in New York City. Shares of Google parent company Alphabet were down over six percent on Monday, following news reports that the U.S. Department of Justice is preparing to launch an anti-trust investigation aimed at Google. (Photo by Drew Angerer/Getty Images)
PHOTO: Drew Angerer/Getty Images North America/Getty Images
Now playing
03:25
Google employee on unionizing: Google can't fire us all
FILE - In this undated file photo issued by the University of Oxford, a researcher in a laboratory at the Jenner Institute in Oxford, England, works on the coronavirus vaccine developed by AstraZeneca and Oxford University. Britain on Wednesday, Dec. 30, authorized use of a second COVID-19 vaccine, becoming the first country to greenlight an easy-to-handle shot that its developers hope will become the "vaccine for the world." The Department of Health said it had accepted a recommendation from the Medicines and Healthcare Products Regulatory Agency to authorize the vaccine developed by Oxford University and U.K.-based drugmaker AstraZeneca.  (John Cairns/University of Oxford via AP, File)
FILE - In this undated file photo issued by the University of Oxford, a researcher in a laboratory at the Jenner Institute in Oxford, England, works on the coronavirus vaccine developed by AstraZeneca and Oxford University. Britain on Wednesday, Dec. 30, authorized use of a second COVID-19 vaccine, becoming the first country to greenlight an easy-to-handle shot that its developers hope will become the "vaccine for the world." The Department of Health said it had accepted a recommendation from the Medicines and Healthcare Products Regulatory Agency to authorize the vaccine developed by Oxford University and U.K.-based drugmaker AstraZeneca. (John Cairns/University of Oxford via AP, File)
PHOTO: John Cairns/University of Oxford/AP
Now playing
02:36
AstraZeneca vaccine provides 'logistical convenience'
President Donald Trump
President Donald Trump's name appears on a stimulus check on May 3, 2020.
PHOTO: Will Lanzoni/CNN
Now playing
03:05
Here's what the new stimulus package means for Americans
PHOTO: Branislav Nenin/Shutterstock
Now playing
02:27
Is working from home the new normal?
(CNN Business) —  

General Electric is once again downsizing, this time shrinking the scale of its once-ambitious plan for a fancy headquarters along the Boston waterfront.

The struggling light bulb and jet engine maker announced on Thursday it ditched a plan to build a 12-story office building in the Fort Point neighborhood of Boston. Instead, GE (GE) and Massachusetts have agreed to jointly sell the campus.

GE is even returning $87 million to Massachusetts, reimbursing the state for most of the $120 million incentive package that attracted the storied company to move from its Connecticut home in August 2016.

The shift reflects how much has changed at GE since then.

GE’s share price, despite a surge in 2019, is down 60% over the past three years. Its dividend has been slashed to a penny.

Longtime CEO Jeff Immelt, who presided over the Boston move, is gone. So is his successor, John Flannery, who lasted barely a year on the job. GE has turned the keys over to Larry Culp, the first outsider in the company’s 127-year history.

GE is racing to shrink itself in a bid to repair a debt-riddled balance sheet. GE is saying goodbye to its century-old railroad division, spinning off the healthcare business and retreating from oil-and-gas. It’s even trying (and so far failing) to find a buyer for the iconic light bulb unit.

Longtime CEO Jeff Immelt presided over the Boston move. But Immelt -- and his sucessor -- have since left GE as the company scrambles to recover from years of bad decisions.
Longtime CEO Jeff Immelt presided over the Boston move. But Immelt -- and his sucessor -- have since left GE as the company scrambles to recover from years of bad decisions.
PHOTO: Michael Dwyer/AP

In other words, the more modest Boston headquarters reflects reality.

“While changes in the Company’s portfolio and operating model will lead to a smaller corporate headquarters, we are fully committed to Boston and proud to call it home,” Ann Klee, vice president of Boston development and operations at GE, said in a statement.

The shift was announced on the same day that Amazon (AMZN) ditched its controversial plan to build a second headquarters in New York City because of political opposition.

GE declined to say how much money it will save by scaling back its ambitions in Boston. The company plans to use the proceeds from the sale to reimburse the state. A GE spokesperson said there has been heavy interest in the site in recent months and the sale will probably exceed the $87 million that it will return to Massachusetts.

The centerpiece of the Boston plan was to build a 12-story office tower on a vacant parcel with nearly 300,000 square feet of space that would be ready by 2021.

Now, GE and the state have reached an agreement to sell the entire property, including two brick buildings owned by the state that once served as home to a candy factory. Those buildings are being renovated by GE, paid for by the state, as part of the $120 million incentive package.

GE plans to lease the brick buildings and use the space to house the company’s senior executives as well as about 250 employees. That’s down significantly from the original plan to host about 800 employees in Boston. The move is scheduled to take place in August.

Many of the employees who were going to be located in Boston will instead remain at the company’s various division headquarters.

In a statement, Massachusetts Governor Charlie Baker’s office said the administration is “proud that General Electric chose to relocate the company’s world headquarters to Massachusetts and looks forward to GE’s ongoing contribution to the growing innovation economy.”