GE Plans More Job Cuts in Aviation Division -- Update
November 24 2020 - 9:14AM
Dow Jones News
By Thomas Gryta
General Electric Co. warned employees that more job cuts are
coming to the conglomerate's jet-engine business because of the
pandemic's impact on commercial air travel even with the promise of
a vaccine on the horizon.
In an internal video message delivered a week before the
Thanksgiving holiday, GE Aviation's new boss John Slattery said
business conditions are difficult and the unit would need to shrink
over the next 18 months, according to people familiar with the
matter.
More jobs would be lost, he said, but the cuts would be more
focused than two rounds of layoffs earlier this year that
ultimately eliminated 25% of the division's 52,000 global
employees. Mr. Slattery didn't disclose the number of jobs that
would be cut in the video, which was reviewed by The Wall Street
Journal.
"The business revenue and profit projections not only for this
year but next year and the year after are fundamentally lower than
what we originally budgeted or expected," Mr. Slattery said from
the division's Ohio headquarters. A former executive at Brazilian
plane maker Embraer SA, Mr. Slattery took over the GE division in
September.
"Overall, particularly in our commercial sector, we'll be a
smaller business and our cost structure simply must align," he told
workers, noting that more details will come early next year.
A GE spokeswoman had no immediate comment.
Write to Thomas Gryta at thomas.gryta@wsj.com
(END) Dow Jones Newswires
November 24, 2020 08:59 ET (13:59 GMT)
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