With GE talking cost out on Flannery's CNBC chat, does one see the overall employee count come down?
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They sell off Aviation likes it no body's business for building they are renting and now 1 plant I know of is not making any profit and can barely afford to buy tooling or equipment needed!!! 8million+ behind on shipping orders and that will be almost 300 employees without jobs since they won't make that up with in a year let alone by the end of the year!
How did the million dollar genius running GE for 16 years not see the downturn in Gas/Steam Turbine business coming a mile away? This clown not only missed it, but he went out and bought another Power business that couldn't even make money when the market was booming. My god this man took hundreds of millions from GE coffers, ran us into the ground, mismanaged the pension fund and cut healthcare benefits every year (the savings from these cuts go straight to GE's bottom line by the way). I think there needs to be an investigation by an independent entity, along with a rigorous financial audit going back at least 10 years.
Where did you see transportation is being sold? Was there a google article or CEO interview on that?
GE is a big fat cow, 650,000 blue badges, 300,000 yellow badges. There is room to become a lean cow from the fat one today. Drop blue badges by 40%.
An easy 30-35% cuts in GE Power at every location. Plane B sell GE Power kill the legacy of GE. I bet that is what GE CEO is thinking.
Don't forget the "Corporate" cuts (GRC facilities, HR, recruiting, etc). Expect at least 20%reduction there. Big cuts coming in Europe as well (Baden). I'm in Power and I can tell you no one I work with feels secure in their job.
It will definitely be down , based on the following three items -
1- Industrial solutions sale to ABB will close mid 2018 : 13,000 employees
2- Power downsizing ( probably in the range of 5-8k)
3- Flannery's comment on $20B of asset sales ; likely businesses on chopping block - Transportation , Power Conversion , Nuclear , Hydro (at least 20k employees, likely more)
Expect 2019 to be slimmer by at least 40,000 employees vs 2017
If you look at GE Power employee to revenue ratio, it needs to come down around 20% and more depending on product demand. You can get there by selling or spinning off sub businesses (some or all of energy connections?), closing plants and offices or layoffs. Expect to see all 3. GE got fat and lazy under Jeff, buying Alstom just made it much worse.