However, as Flannery has restructured the multinational conglomerate, its value has dipped below $100 billion and shares are down more than 35 percent this year, following a 45 percent decline in 2017.
His departure makes him the shortest-serving chief executive in GE's 126-year history.
General Electric has ousted its chief executive, installing new leadership for the second time in two years as it struggles to return to growth. But since his appointment in August 2017, GE's business woes have grown and its stock price has sunk to new lows.
The company also announced that the Power division may take a $23 billion "goodwill impairment charge", a mechanism whereby companies settle the differences between the actual value of assets and the premium paid to acquire them.
In pre-market trading, GE's shares are up 14.4% to $12.92.
"With Larry, what GE shareholders get is an outsider who will likely strip corporate back to necessary functions and tear down all the fiefdoms that prior management" built up, Scott Davis, a founding partner at Melius Research who has covered the company for more than a decade, said in a research note.
"GE remains a fundamentally strong company with great businesses and tremendous talent", he added.
In addition to announcing Culp's ascension to the top spot, GE also said Monday that it may take a $23 billion goodwill impairment charge tied to its GE Power business and that it was going to miss its guidance targets.
Whispers of Culp eventually taking the helm at GE circulated nearly as soon as he joined the board in April.
Flannery is being replaced by H. Lawrence Culp Jr., the former CEO of Danaher, an industrial company.
GE has turned to cost-cutting measures in recent quarters to offset sagging revenues, selling off a light-bulb segment once spearheaded by Thomas Edison and its distributed power business.
Culp said in a statement, "We will move with urgency". Other divisions are on track, the company said in a statement today. Mr. Culp, who is known as Larry, spent roughly 15 years at the helm of Danaher Corp., a company with business units that include dental equipment, testing measurement gear and life-sciences and diagnostics equipment. We remain committed to strengthening the balance sheet including deleveraging.
In June, Flannery made good on that promise when GE said it would spin off its health-care business and sell its interest in Baker Hughes, a massive oil services company.
The stunning shakeup underscores the magnitude of the crisis at GE, which has lost half a trillion dollars in market value since the peak in 2000.