Thread regarding General Electric Co. layoffs

GE will never learn its lessons

GE will never learn it's lessons. Everyone of the GE businesses go through normal up and down business cycles. One business is built to last. That is called GE aviation. Why, because military spending is up. I remember a business GE used to own called KAPL (look it up, cost plus GOCO). Engineers used to move from GE power to KAPL when times got tough in commercial power. Why was that important it preserved GE talent in an area. That cycle is now happening for Power ..down cycle is here. GE has no choice but to let the people in Power because it acquired a white elephant named Alstom. They have too much overhead for the factory backlog. The problem is all those good white collar experienced people are going to the competition to find a job. This process is going to hurt GE power in the long run. The GE portfolio as a whole is not built for up and down cycles. There are not offsetting businesses to pick up the slack like the days of old. There is no GE capital with huge knobs to turn to make up the financial misses. Hey, emperor has no cloths ! Jeff created a damn mess for John to pick up the pieces. Sorry but Jeff and his round table of stock option buddies have put John in a nasty position cut the crap out of every division including corporate, cut the dividend. He needs to look to buy offsetting businesses or sell off all the parts...break it up.

Bumped from @PH0bouh-6oin. Hit the nail on the head.

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Post ID: @OP+PTkezhT

15 replies (most recent on top)

So just a few months after merging with BH they realise the fossil fuel industry is heading towards the crapper? Waste of $34B.

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Post ID: @1xjo+PTkezhT

So just a few months after merging with BH they realise the fossil fuel industry is heading towards the crapper? Waste of $34B.

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Post ID: @1pgx+PTkezhT

Any good news from Power Conversion? scared by so many bad news.

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Post ID: @1wmg+PTkezhT

Steam power systems is being packaged to be sold. That's if GE can sell the business in this market. The fossil steam market is flat and declining and GE will exit if possible. But who in their right mind would by a bloated welfare employment state with no technical or market advantage. oh yes..... GE would! Terrible business move by immelt and bolze.

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Post ID: @1diw+PTkezhT

Despite all the problems, would be surprised is significant part of Power is in the $20B asset sale. I would think the following:

Gas Power - Restructuring / cost reduction for a smaller volume business

Power services - Management shuffle + Fieldcore ; would not divest this since GE is dependent service revenues more than ever

Steam Power - Not sure ... keep if there is future for Alstom ST , HRSG

Nuclear - Probably will be sold, though who will buy would be a good question

Industrial solutions - Sale of business already in place

Power Conversion - Probably will be sold

Grid solutions - this is a JV with Alstom with GE majority share - think would be retained

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Post ID: @sgk+PTkezhT

Actually Stokes' broadcast today showed for the first time some admittance that fossil fuels are on the way out. BH and Alstom deals are probably not looking very good right now given the market and where it is headed. The future for Gas and Steam is steady decline so plant closures and job losses might be unavoidable regardless of performance. I think segments of power will be a big part of the 20 billion Flannery announced will be getting sold off because recovering those revenues of old is probably impossible now in these market conditions. It's sad times, but sounds like Siemens is headed there too !

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Post ID: @lrc+PTkezhT

Hmmm.... did not see any turnaround skills from Stokes during his two years at Energy Connections ; left them as stagnant as when he took over

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Post ID: @fcm+PTkezhT

Two key points from Stokes' meeting. He hates Powerpoint and B.S..

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Post ID: @itg+PTkezhT

Power re-org ? Anyone in leadership being held accountable (i.e. demoted / fired) ? Or just the musical chairs - sycophant #1 exchanges titles with #2 ?

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Post ID: @xdv+PTkezhT

GE's answer to every problem is a reorg. Stokes went over the Power reorg today...sounds like more deck chair moves on the titanic.

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Post ID: @znh+PTkezhT

The bar on Great Leadership is so low right now that we dont expect too much. I believe that John Flannery is attempting to change that. Too many years of folks not being held accountable doesnt change overnite.

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Post ID: @yjv+PTkezhT

What we will hear soon enough......GE the Wells Fargo of Power Industry.

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Post ID: @rzq+PTkezhT

Poor leadership that believes it's world class aka Cretinville

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Post ID: @wgb+PTkezhT

GE loves to have financial jargon junkies running complex operations. Simply Stupid. And is the reason for GE's demise.

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Post ID: @dbi+PTkezhT

no synergies at all. they used to claim great GE management could handle anything, see where that got them. why would you place a former accountant then CIO to be the CEO of your transportation business? what about knowing the product, business, industry, customers, etc ... that is not learned in a week at Crotonville

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Post ID: @yit+PTkezhT

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