GE Capital to cut (some portion of) 75,000 jobs

In desperate financial times, it seems that even the "profitable" institutions are in dire trouble.

www.bloomberg.com...

"GE Capital posted more than $7 billion in profit in the first nine months of this year, even with the turmoil in global markets. The targeted $2 billion in savings is pretax and net of the costs it will for incur for restructuring, GE said. "

[edit on 11/19/2008 by Knobee]

ouch. 75K from GE and Citi with 53K. will we see 10% unemployment?

"Chief Executive Officer Jeffrey Immelt is shrinking the finance units to 40 percent of the parent’s profit from about half last year as he reduces debt issued and focuses on more profitable areas. "

60% reduction in capacity within the finance arm. Very predictable as the world de-leverages it's debt.

FAR more to come.

JK

I just re-read the article it says "GE Capital will shed an unspecified number of its 75,000"

Could be 1000 or 50,000 jobs.

Originally posted by LookingAround
ouch. 75K from GE and Citi with 53K. will we see 10% unemployment?

You most certainly will, but remember, what we are seeing is not part of the problem, it is part of the solution.

Hang in there - at least a couple more years of debt deleverging and hedge fund unwinding to go, etc.

Until then, cash is king.

JK

The article did not say it was cutting 75k jobs. It just stated it was cutting some of the 75k jobs the company has. There is quite a difference in those statements. Your title is fear mongering. Please change it, because it is DISINFO. How does it go? Deny Ignorance.

Originally posted by LeaderOfProgress
The article did not say it was cutting 75k jobs. It just stated it was cutting some of the 75k jobs the company has. There is quite a difference in those statements. Your title is fear mongering. Please change it, because it is DISINFO. How does it go? Deny Ignorance.

Amazingly, after having read that article a number of times, the sentence that I now see didn't sink in before...

"GE didn’t say how many of the 75,000 jobs at GE Capital would be eliminated under the new organization because each division typically announces independently. GE Capital, which has sold some consumer-finance divisions in the past two years including the WMC mortgage unit in the U.S. in 2007, is concentrating more on commercial financing."

Still, savings of $2bn is a pretty hefty sum of savings... they are either going to lose 100 normal employees or one top executive.