G.E. Cuts Jobs as It Navigates a Shifting Energy Market
- 7 years ago
G.E. Cuts Jobs as It Navigates a Shifting Energy Market
His team, he said, will be “sweating every dollar.”
“There’s no doubt that the market has been soft, but they’re not telling every side of the story —
that clearly there have been bad decisions made at the organization and about how they were going to market in select businesses,” Mr. McCarthy of Stifel said.
Mr. Flannery told investors that the company had exacerbated a tough market situation “with some really poor execution.”
Russell Stokes, the head of the company’s power division, has told investors
that he planned to cut back the division’s capital expenditures next year to nearly half its current level.
Mr. Flannery, who took over in August, has called 2018 a “reset year.”
“Flannery’s moves are the obvious, basic ones that he needs to play to turn G. E.
around,” said Robert McCarthy, an analyst at the research firm Stifel.
The unit, G. E.’s largest industrial acquisition at the time, has since then “clearly performed below our expectations”
and offered only single-digit returns, Mr. Flannery told investors in a conference call last month.
Siemens, G. E.’s main rival, said last month that it would cut 6,900 jobs worldwide
in units focused on power plant technology, generators and large electrical motors.
His team, he said, will be “sweating every dollar.”
“There’s no doubt that the market has been soft, but they’re not telling every side of the story —
that clearly there have been bad decisions made at the organization and about how they were going to market in select businesses,” Mr. McCarthy of Stifel said.
Mr. Flannery told investors that the company had exacerbated a tough market situation “with some really poor execution.”
Russell Stokes, the head of the company’s power division, has told investors
that he planned to cut back the division’s capital expenditures next year to nearly half its current level.
Mr. Flannery, who took over in August, has called 2018 a “reset year.”
“Flannery’s moves are the obvious, basic ones that he needs to play to turn G. E.
around,” said Robert McCarthy, an analyst at the research firm Stifel.
The unit, G. E.’s largest industrial acquisition at the time, has since then “clearly performed below our expectations”
and offered only single-digit returns, Mr. Flannery told investors in a conference call last month.
Siemens, G. E.’s main rival, said last month that it would cut 6,900 jobs worldwide
in units focused on power plant technology, generators and large electrical motors.