And in some cases, GE plans to shut entire locations, meaning the cuts won't be spread proportionally at each site.
One unofficial estimate had the cuts at less than 3 percent of the Schenectady workforce, which would be much lower than the 20 percent worldwide and comes out to about 100 jobs.
http://www.timesunion.com/business/article/GE-Power-cutting-12-000-jobs-worldwide-in-3-5-12412474.php
GE layoffs will be huge to get $3.5 of cost off the books, especially since the business cost structure is a mess because of last decades of bad management that has moved operations all over the world I stead of operating out of the two basic product departments in Greenville and Schenectady. Operating out of two basic locations where the service business was associated with field offices close to customers needs was the most cost effective.
Now their overhead is huge with little synergy and cash is flowing out to vendors with huge transportation costs all over instead of within two facilities with value added cash flowing in by turning raw materials into finished parts instead of cash flow out to vendors and high shipping costs.
GE Power needs to fix thee huge inefficiencies and cash bleeding out, and not just cut across the board. They need to restore the previous business they trashed years ago to fix. The layoffs will be huge. and ineffective in a failed attempt to take $3.5 Billion out of he present structure, without fixing what is really wrong.
It is hard to say what will happen in Schenectady in an attempt to make this cost out number.
"GE has to cut $3.5 Billion that was just $2 Billon several weeks ago"
Wait, what? that's almost double. Will they double the size of layoffs?
*stack
if schdy plant is so busy why are steam guys being offered tlows and why are stuck pit and windstand guys getting flexed to bar shop?
For the time being, the Schenectady factory is busy, so I would not expect layoffs in production right now, especially with the business needing to make 4Q numbers. As for next year, there could be some cuts. Salaried layoffs have occurred over the past 2 weeks.
I’m hearing 1/3 of the hourly employees will be effected.
GE has to cut $3.5 Billion that was just $2 Billon several weeks ago. It will be very difficult to achieve these huge numbers, even though Europe will get slammed very hard.
Effect On Payroll now in December will not effect closing 2017 because any possible layoffs in Schenectady now will have the four week grace period. To have Effect On Payroll to close Q1 and try to make improved numbers means there will be layoffs before the end of Q1 to close the books.
When they see how hard to achieve $3.1 Billion cuts, everywhere will be hit including Schenectady.
I do not ever remember having to take such huge cost out, including during he 1986 mass firings and Lynn plant closing.
GE is in deep trouble now as cash flow is tanking from bad management and bloated management structure and vendor cost of quality during the past decade