Categories Industrials
GE’s stock falls amid business slowdown and job cuts
GE Aviation has decided to cut its total US workforce by around 10%
Shares of General Electric (NYSE: GE) were down 6% in afternoon trade on Monday after the company announced job cuts at its Aviation division due to aircraft groundings and flight cancellations caused by the current health crisis.
In the wake of the coronavirus pandemic, several airlines have cancelled their flights and grounded significant portions of their fleets leading to lower demand and reduced air travel. In this scenario, GE Aviation has decided to cut its total US workforce by around 10%.
The company also said that around 50% of its maintenance, repair and overhaul employees in the US will face a temporary lack of work for 90 days. These actions come on top of the ones the company has already taken which include a hiring freeze, cancellation of the salaried merit increase, cost reductions and job cuts.
David Joyce, CEO of GE Aviation will forgo half of his salary from April 1, while Larry Culp, CEO of GE has decided to forgo his full salary for the remainder of 2020. These actions are expected to save $500 million to $1 billion in 2020.
GE also said that its Healthcare division is seeing reduced demand for certain equipment due to the cancellations of elective procedures. However, the company is working to increase the manufacturing capacity and output of equipment such as CTs, mobile X-ray systems and ventilators, which are important in the diagnosis and treatment of coronavirus patients.
Last week, GE announced that it expects to complete the sale of its BioPharma business to Danaher (NYSE: DHR) on March 31. The company believes this transaction will help strengthen its financial position.
Most Popular
PG Earnings: Procter & Gamble Q3 profit climbs, beats estimates
Consumer goods behemoth The Procter & Gamble Company (NYSE: PG) announced financial results for the third quarter of 2024, reporting a double-digit growth in net profit. Sales rose modestly. Core
AXP Earnings: All you need to know about American Express’ Q1 2024 earnings results
American Express Company (NYSE: AXP) reported its first quarter 2024 earnings results today. Consolidated total revenues, net of interest expense, increased 11% year-over-year to $15.8 billion, driven mainly by higher
Netflix (NFLX) Q1 2024 profit tops expectations; adds 9.3Mln subscribers
Streaming giant Netflix, Inc. (NASDAQ: NFLX) Thursday reported a sharp increase in net profit for the first quarter of 2024. Revenues were up 15% year-over-year. Both numbers exceeded Wall Street's