Thread regarding General Electric Co. layoffs

$23B Charge Off in Power| Board Fires Flannery

General Electric abruptly removed John Flannery as CEO on Monday and installed Lawrence Culp as his successor and chairman.

GE also said it will take a $23 billion non-cash charge for its power business, adding that it "will fall short of previously indicated guidance for free cash flow and EPS for 2018."

"GE Power's current goodwill balance is approximately $23 billion and the goodwill impairment charge is likely to constitute substantially all of this balance," the release said. "The impairment charge is not yet finalized and remains subject to review."

GE shares surged 9 percent to $12.30 in premarket trading Monday on the news.

The stock posted one of its worst weeks of 2018 last week, down 7 percent, and hit a new 9-year low of $11.21. Concern about a recent gas turbine failure in Texas has hung over GE, with its board of directors meeting Wednesday to discuss how widespread the issue is, according to the Wall Street Journal. Flannery reportedly reassured employees that the company's engineers have found a solution to the flaw and told staff to "fight for the company," saying media reports overplayed the failure of a turbine blade at the Colorado Bend power plant in Wharton County, Texas.

Flannery was appointed August 2017.

https://www.cnbc.com/2018/10/01/ge-removes-flannery-as-ceo-takes-23-billion-non-cash-charge-for-power-business-problems-and-withdraws-guidance.html

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| 5271 views | | 21 replies (last October 2, 2018) | Reply
Post ID: @OP+VqoQcxQ

21 replies (most recent on top)

Aviation just hasn't had the closet door thrown open yet. It's as FUBAR as the rest of GE.

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Post ID: @1qhc+VqoQcxQ

Stokes will be gone within a week. Putting him in charge is the worst thing Immelt did. Ok, next to the Alstom deal.

Strazik is next, enough of the FMP/CAS/Fairfield/GE Elfuns BS - putting stuff under the rag for years. Strazik has been central in all this.

Put some real l leaders in charge, who understand the business, will make tough decisions, and clean up the mess.

Pick engineers, they are running Aviation, no BS there with Joyce an his team.

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Post ID: @1cqo+VqoQcxQ

Fire Stokes, Nugent, Strazik. Immediately. For misconduct.

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Post ID: @1srh+VqoQcxQ

Yes they can purge for nasty, for names, or if a company rep contacts them.

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Post ID: @1vjf+VqoQcxQ

Anyone know why half of the comments are gone from yesterday? Does someone have ability to purge if they don’t like what is being said?

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Post ID: @1lsc+VqoQcxQ

They're not looking to competitors for new products? You should have told that to the Iraqi power company that just signed a significant deal with Siemens even though they were a long term GE customer.

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Post ID: @1yeq+VqoQcxQ

"Customers are quickly looking at competitors for new product "

No they aren't. Orders are down for all GT manufacturer's. GE could have 50% market share and it wouldn't be good enough. The GT is going the way of the film camera.

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Post ID: @1lbr+VqoQcxQ

We better get our Leadership figured out as this circus all plays nice to shareholders but what about the employees and customers. Maybe if we started putting them first we might see a drastic change. Customers are quickly looking at competitors for new product and even working with them on services as they are concerned about our viability going forward. Additionally our best are jumping ship due to the continued takeaways. But from the HR narrative we’re at the current market comps. -what a bunch of BS. How about clawing back the millions we gave to Immelt and his cronies and I’m sure the exit pkg. being negotiated with Stokes and others. But don’t be too upset as you’ll get a week for every year service- more than enough to ride off in the sunset in style.

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Post ID: @1yzp+VqoQcxQ

Next Stokes and Strazik need to go. Russell and his whole entourage up on the fifth floor just working on metrics and dashboards...real value add there that will certainly bring the orders in! Then you have Strazik who initially stated we weren’t going to run the business through a financial rectal every week. That lasted about a month... the files that now need to be filled out; some of the finance people can’t figure them out. We have to get people back in Leadership roles that know the Product and customer base instead of financial wizards that think creative accounting is the magical fix all and those that believe the more metrics we put in place that will somehow lure customers back. What a disaster! The sad part is look at your neighbor over the next few months as one of you will be gone! And as is typical all the layoffs will be across the board vs. focusing on areas that add no value other than to measure everyone else. Look at 4200 we have more people in that building on H1-B visas than we have supporting our customers. And as someone already mentioned...working on digital efforts with no payback. I echo what many have already said... GE was a shining star where you were proud to tell people where you worked and now you hang your head. All because of one ego maniac who ruined this company over 16 years and then Flannery is somehow responsible for not being able to right the ship in 14 months- too bad they didn’t pull the same trigger on Immelt 14 years ago. . If I hear one more time you have to be a “big Leader” and communicate the narrative knowing full well it’s a bunch BS it will be time to call it what it is. You can put whip cream on a pile of s... but at end of end of the day once you get past the whip cream you still have a pile of s... The bigger issue the new CEO will have now is we have driven most everyone out of the company that had the experience and knowledge that might help us get out of this mess. We continue to put the “ know it alls” in Leadership who continually shutdown those that provide constructive feedback if it doesn’t fit their narrative... after all they have all the answers.

As quick as we save a penny others spend a dime. How many people are on ex-pat packages in Baden that don’t need to be there. I guess the T&L freeze was only meant for a select few as some Senior Leaders still traveled the globe for non- customer events. They continue to preach accountability but hold no one accountable including themselves...they laugh about it. Sound familiar - look what’s happening to this country! What a novel idea if someone is blowing their budget that they are held accountable vs. telling everyone else to s--- it up. The PC culture needs to go! We have to start calling out the pile of s.... when we see it-only then will you this company return to a great but smaller enterprise.

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Post ID: @1ibv+VqoQcxQ

Pity GE didn't have the balls to sack immelt in 2008.

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Post ID: @tzk+VqoQcxQ

GE lost its way when stopped managing the products and started managing the money. At the moment nothing works as it should, there is no one accountable, things keep changing for the sake of changing and there is no though in improving anything.

Case in point Fieldcore, all the useless GE/Alstom management is moving as management in FC, so different name same s**t, plus total chaos, new SSO's, FE's need to have computers re-imaged, request access to all the websites they already had access to, no one informs anyone of anything, no one knows anything.... I agree with the comment that GE is a boat anchor, whoever tries to grab it will just sink with it.

The difference between JF and LC will be the size of the scissors and how fast he'll use it, the strategy won't change.

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Post ID: @boi+VqoQcxQ

If Russell gets fired, who else will be left to tell us about wonderful vacations using private jets and under the palm trees of small pacific islands filled with rich people.

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Post ID: @ycv+VqoQcxQ

Relieving Capt. Smith of his commanded after striking an iceberg, then appointing a more qualified and well liked captain as his replacement still would not have prevented the Titanic from sinking. The damage is done. All that will be left by the time the sun rising on GE after the chaos will be a lucky few, their life rafts and the debris floating among them. I feel sorry for the young ones here.

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Post ID: @hrz+VqoQcxQ

What the board has failed to act for years was take an action like this in a timely manner when Jeff Immelt robbed the company of its future. destroyed the best talent and lied to investors and yet SEC or one going after Jeff Immelt.

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Post ID: @kob+VqoQcxQ

Hope they reserved enough for the hundreds of millions of dollars for John's, and the others that will be "let go", severance and pension as they definitely earned it

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Post ID: @gbh+VqoQcxQ

The third quarter bad news had to be countered by some " good news" to keep the stock from dropping to single digits. Enter the fall guy. Just another finger in the dike.

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Post ID: @kbr+VqoQcxQ

Russell is one of the problems with the GE culture and he helped bring about Flannery's departure. He posted about a turbine issue on his Linkedin account and the company lost 11 billion in market cap. There are always issues with turbines so this particular turbine issue is not news worthy. But Russell used this opportunity to stab Flannery in the back.

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Post ID: @atr+VqoQcxQ

Did you know that Russell played sports in his youth? I just found that out, not sure if anyone had heard that.

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Post ID: @uje+VqoQcxQ

If I am not mistaken, this is the 1st time in 126 years that the CEO is not an insider. And the 1st time also that the CEO has such a short tenure. That says all.

All the EB+, ALL OF THEM, should leave. Now.

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Post ID: @tdw+VqoQcxQ

Stokes should have been the first guy to hit the road...

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Post ID: @bty+VqoQcxQ

Now fire Stokes - ASAP

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Post ID: @edq+VqoQcxQ

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