Thread regarding General Electric Industrial Solutions layoffs

Acquired by ABB today

We'll see what happens with GE IS, ABB typically takes time to turn things around, so I'd say no layoffs in a short term. We'll see...

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Post ID: @OP+PrhjFp2

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How many of you think you will become a synergy after being sold to ABB?

Post ID: @3iuef+PrhjFp2

ABB division (Electrification products) which will absorb GE IS currently has a profit margin of 16%.

GE IS is a dud in terms of profitability .ABB has committed to its shareholders that the combined division will return to the same profitability in 2020 . This would mean $200M in annual cost out .. at least 2000 heads + some factories.

ABB is typically very slow to integrate ... but their previous acquisitions have been profitable businesses (Thomas & Betts etc.) , unlike GE IS. ABB will have to go out of character and move fast to take cost out ... or the activist investor (Cevian) will rise again.

Post ID: @fkzt+PrhjFp2

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