Thread regarding General Electric Co. layoffs

How do the executives sleep at night? On their beds filled with cash

I'm assuming that the SEC will find some dirt - if not a lot - in Aviation. Their rev rec process has always been off to me, and like previous posters have said, everything is calculated on complicated excel spreadsheets, then toplined to death. When the new rev rec standards came out, Aviation had to restate previous years and guess what - every year and division was a negative impact.

Specifically, she said the agency is looking into "revenue recognition and controls" for the company's long-term service agreements

I've been trying to tell you folks that this is GE's number one problem. New units don't make money. Often times they are sold at negative profit just so GE can make money on the repairs. About ten years ago GE figured out how to monetize that into CSA's where GE would redesign failing parts and both us and the customer would make money. To do that, GE hired LOTS of engineers. Too many. Way too many. Now, they are done redesigning just at the same time the customers are trying to renegotiate their CSA's because they are not using the machines. WT's are pushing GT's off the grid. It wasn't supposed to happen that way but it is. So GE Power is at a loss for revenue and needs to A) layoff all those engineers and B) recalculate it's CSA revenue targets going forward.

JF is trying to get ahead of a story line where GE management is criminally liable for poor reporting. The medical insurance liability has been there for years. Years. How could it suddenly be found in a review? It has been reviewed for years, over and over. Were the people doing the calculations lying? Were the reviewers complicit? GE hasn't issued a medical insurance policy since something like 2006. Why all of a sudden is there a $15B liability?

https://www.thelayoff.com/t/Ri0PVBi#replies

Told you so. Come to me for all you're high quality rumor mongering needs. :D

I was young, fresh from University, and could not challenge certified actuaries, which are like a cult per se. The calcs were all these std. methods, all in excel sheets, using different formulas and lots of vba code no one really understood what they did, apart of putting together the famous triangles that provided the projections. The numbers were huge, each portfolio was at the billion level. So was easy to squeeze a 100m here and there and add up to the result, to cushion and top up when elsewhere on ge fell short. When they sold to Swiss re, the buyer picked the shorter tail portfolios, and asked a top up from GE, to rebuild the reserves. What was left was really the crap. And as they stopped selling policies they missed periods w stronger pricing. Of course long care was a bomb, and they could no find a buyer even at any price so toxic it was. So GE got stuck with the worse bit and could not sell policies anymore at better pricing to reduce the damages. All rest is history. My take: everybody knew. These ltc portfolios are predictable because the dataset is huge and homogeneous. I don't buy they just found out. What happened is that the regulator couldnt take more BS.

Because talking to an ombudsman ever worked. A coworker took an issue to the ombudsman about a manager, and all they did was route the complaint back to the manager in question.

Zbf. If you witnessed corruption and didnt talk to an ambudsman, you are just as bad...

Slight correction...

-vuv, the acronym stands for Corporate _$$ S---ers".

The news just gets better and better. No doubt now, my layoff in 2017 was an absolute blessing. The once great GE ship is listing hard to port and going down quickly in a blaze! I feel sorry for the few great individuals I knew that were truly dedicated leaders and mentors within the company. These wonderful folks along with scores of unjustified laid off professionals affected by years of poor leadership decisions, don't deserve this outcome.

To the contrary, all those entitled cookie cutter CAS wanna be's, the "buddy system" elite, the arrogant manager s----ups, the idea robbing backstabbers for better EMS/PD rank and especially the career power point meeting attenders which are no doubt struggling internally with the tarnished GE brand, well -- here's to you! Karma is a Beeatch. Good night and good luck!

GE is slowly falling apart. Piece by Piece. There is not enough CAS or corporate nut lickers to save them at this point.

BURN BABY BURN!!!

If it was this easy to cook em ..why the hell is KPMG still their auditor at GE?

As recall there was recommendation by toe board to retain them but it was brought up for a shareholder vote from my memory.

I guess because you pay an auditor to tell you what you want to hear. Things come off the rails when you have to want to sell assets and the condition for sale is a independent review of audited financials from a company you are not paying to review them.

I meant 2000s, not 20000.

I worked at ERC in the 20000 next to the actuaries team that calculated the reserves. I witnessed frequent requests from management to make lower estimates so GE could hit the numbers. The process was very manual and all guess work, so it was very easy to GE to cook it. I m not surprised all blew up now.

Funny...everyone wants to blame JI but the SEC settlement back in 2009 was when good ole Jack was running the company. The period of time for the questionable accounting was for 1995-2004 time frame. These corporate nut lickers at GE have been working the tax code and pulling the wool over investors eyes for decades with the invisible ink on the financial statements. Just break up the POS company and cut the BS. We are all tired of your lies and smoke and mirrors. How do these executives sleep at night.

Nobody believes GE's numbers, or the people that make them. Difference was, in the past, employees would aslo get a share of the profits from gray accounting, now its only the execs that profit.

This isn't the 1st time something like the current SEC investigation has happened. Back in not-so-distant history, in 2009 the SEC investigated, charged, and fined GE $50 million for multiple instances of questionable accounting practices that made the financial results appear more favorable than they actually were. Look it up directly from the SEC website, all the documents, the press release, complaint, and the settlement are all there.

https://www.sec.gov/news/press/2009/2009-178.htm