A Reuters Story Reveals That Large Cuts May Be in Store for the Giant
General Electric Company (NYSE:GE) will be looking to make large cuts and shed jobs in order to help make up for a weak year on the stock market, a source close to the situation told Reuters.
No number was released concerning how many were to be cut, and GE did not respond by confirming the rumors, but a spokesperson did tell Reuters that the company is looking to cut $2.0 billion in costs by the end of 2018, and that “all aspects” of the company were being reviewed and a plan would be laid out to investors in November.
The source, however, said that there will be cuts before November.
This would be in keeping with GE’s shifting strategy. After an abysmal year on the stock market, the company is looking to shake things up by reducing costs and culling the fat in order to help spark a stock resurgence.
The company hired a new chief executive officer, John Flannery, who has been looking closely at where to make cuts in the massive company. Staff reductions would largely take place in human resources, recruiting, corporate security, procurement, auditing, helicopter and jet operations, and possibly finance, according to the inside source.
Information technology, which is already locked in a hiring freeze, may also be facing reductions when the cuts come.
“GE’s new CEO preparing job cuts in bid to reduce costs: source,” Reuters, August 31, 2017.