New GE CEO Plans to Cut Jobs

According to a Reuters report that cited sources familiar with the matter, General Electric Co.’s new CEO is planning on slashing jobs.

CEO John Flannery will be relying partially on job cuts so that the company can reduce $2 billion by the end of next year.

His plan will be presented to investors in November.

It was back in March that the company met with Nelson Peltz, an activist investor that heads Trian Fund Management. Peltz
has a $2 billion stake in GE. It was this meeting that settled that a $2 billion cost reduction target was needed.

Since the start of the year, GE shares have tumbled over 20% driving former CEO Jeff Immelt to resign.

Disclaimer: We have no position in General Electric Company (NYSE: GE) and have not been compensated for this article.