General Electric is making plans to significantly reduce corporate staff in an effort to cut spending and boost profits under its new chief executive. Elly Park reports.
General Electric is planning job cuts to limit spending and boost profits and cash flow. On the chopping block, positions in IT, human resources, security, helicopter and jet operations, procurement, auditing and, possibly, finance. The company said it's taking out $2 billion in cost by the end of 2018. Reuters correspondent Alwyn Scott is covering the story: (SOUNDBITE) ALWYN SCOTT, REUTERS CORRESPONDENT (ENGLISH) SAYING: "They have a new CEO, who started August 1, and there is a lot of expectation on him to kind of turn around the financial performance of GE. The shares have fallen about 23-odd percent this year, and they had a long decline under the prior CEO Jeff Immelt, who was big on investing, but had sort of inconsistent returns." On the flip side, General Electric is still spending money in areas, such as its digital business, which it considers an important investment. Flannery is scheduled to update investors on his progress in November.