Thread regarding GE Power layoffs

Time for a change

Put Russell in charge of every but Gas. Sell everything other than Gas, turn out the

lights, pay the fine, and close Belfort.

| 2329 views | | 6 replies (last )
Post ID: @OP+VUtU721

6 replies (most recent on top)

Russell 100% needs to go. He's destroyed multiple businesses. Why expect a miracle in power?

Post ID: @rnwm+VUtU721

Russell needs to go to power-other and go down with the ship. What an incredibly incompetant leader.

Post ID: @7llo+VUtU721

President Trump's policies will continue in the right direction so plenty of optimism ahead. I see a big future around the corner. MAGA!

Post ID: @1agr+VUtU721

An Abridged article form the wire:

GE splitting up its Schenectady power unit

By Eric Anderson and Larry Rulison


…The changes, announced by new CEO H. Lawrence Culp Jr. after just 30 days on the job, include eliminating the current "headquarters structure" of GE Power and splitting it into two units, both of which would report directly to Culp himself.

It's unclear how the moves would impact local GE jobs...

Culp said the move results in "effectively eliminating" the GE Power headquarters structure, although it is unclear what that means exactly…GE Power would be split into two units with the gas business, which makes GE's high-efficient HA gas turbine that is the centerpiece product for its power plant customers, being one unit... The rest of its portfolio, including its steam turbine and nuclear business, would be the second unit. Both units would report directly to Culp.

Overall, GE reported a $22.8 billion loss for the quarter on $29.5 billion in revenue. A big chunk of that loss was due to a $22 billion goodwill impairment charge, much of it from its failed 2015 acquisition of French energy giant Alstom. Power has struggled since that merger. The division reported a third quarter loss of $631 million, compared to a profit of $464 million a year earlier. Orders in the quarter fell 18 percent from a year earlier to $6.6 billion while revenues fell 33 percent to $5.7 billion.

Culp signed a four-year contract with GE that will pay him an annual salary of $2.5 million and $15 million in yearly stock awards. He can also earn an annual bonus of up to $3.75 million.

Flannery's exit package is still under negotiation, GE said.

"It's hard to say that we don't need dramatic or drastic change in a business that is performing the way that (GE Power) is, right?" Culp said. "I mean, in some respects, it's that simple. So, in my mind, beyond compliance and quality, everything is on the table at (GE Power) and I think Russell and the team would echo that if they were on the call."

GE's newest gas turbine, the HA, has been having technical problems lately. Gas turbines are the workhorse of the power plants built by GE's customers around the world. The steam turbines made in Schenectady are used to take excess steam from those gas turbines and turn it into additional power as part of the so-called "combined cycle" process. Generators that convert the kinetic energy made by the turbines into electricity are also made in Schenectady.

Culp said that the moves around the GE Power headquarters consolidation are geared toward moving resources to focus on the biggest needs, which right now would appear to be the gas business. GE also said the U.S. Justice Department had launched its own probe into the company's accounting practices, while the Securities and Exchange Commission had expanded its probe of those practices.

Post ID: @ehk+VUtU721

Post a reply