GE To Cut 6,500 European Jobs
Last April, the financial markets cheered the biggest restructuring in GE's history when the oligopoly announced the dramatic shrinkage of GE Capital but more importantly, GE announced the largest, at the time, stock buyback in history, repurchasing some $50B in shares.
As we said at the time, "the main reason for this near record buyback announcement is two-fold: GE's belief that there is no incremental value left in GE Capital, the bulk of whose assets it is selling, a division which nearly bankrupted the conglomerate back in 2008 when as a result of its massive leverage, anywhere between 9x and 10x" and added that the other, less pleasant consequence for GE employees would be the massive layoffs to be announced in due course.
A few hours ago, "due course" arrived when the company announced plans to cut 6,500 jobs in Europe over the next two years, including 765 in France, a spokesman for the company in France said on Wednesday. The spokesman added that GE was sticking to its pledge to create 1,000 net jobs in France in the next three years as part of its recent acquisition of Alstom's energy business.
So definitely firing 6,500, but tentatively promising to add 1,000.
He spokesman added that unions had been informed on Tuesday and that talks would start on Wednesday. "This is a plan, which could change following discussion with employee representatives," he said.
We doubt the local unions will be delighted by the news, although we are confident they will not be surprised.
Furthermore, this is only the beginning, because as we showed late in December, as a result of last year's record $5 trillion global M&A spree, just the Top 10 M&A deal accounted for over 1.1 million workers: if one assumes a 10% "synergy rate" this means that over 100,000 workers will be quietly "cost-cutted" in the coming months.
It also means that the US "waiter and bartender" jobs recovery will not only soon be the strongest in history, but will promptly spill over to the rest of the world.
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ceo bonus time
they are worth A LOT. everybody else isn't worth jack shit.
Well all that "saved" revenue has to go somewhere! Patek Philippe's don't grow on trees.
Cut 6 million and hire 1 Million. Headline record job growth 1 million people hired.
"cut 6,500 jobs in Europe over the next two years, including 765 in France, a spokesman for the company in France said on Wednesday. The spokesman added that GE was sticking to its pledge to create 1,000 net jobs in France in the next three years"
Wait, what?
So let's just stick with France for a moment. They promised to add 1,000 net new jobs over the next 3 years but they're starting by cutting 765 jobs over the next 2 years. Which means they're going to have to create 1,765 jobs in year 3? Do I have that right?
Are you sure they said "net new" or did they use the Obama "saved or created" metric for jobs? Like they were planning to cut 1,765 jobs, but only cut 765 which means 1,000 jobs were saved.
no, it's cut 765 in the next two years, and find some excuses in the third, which is, from the perspective of a megacorporation that hunkers from quarter to quarter somewhere "in the future which we, the management, can't be bothered with"
Immelt, Obama's "Job Creation Czar," CEO of GE.
How odd.
You're not allowed to fire people in France, dude.
Sort of like, we failed to cut CO2 emissions ten percent in ten years as promised, so we'll make it up by promising to cut CO2 forty percent in the next twenty years!
"I'm gonna wash that peon job right out of my hair." - Fortune 500 CEO
aGEd.
My last month paycheck was for 11000 dollars... All i did was simple online work from comfort at home for 3-4 hours/day that I got from this agency I discovered over the internet and they paid me for it 95 bucks every hour... Try it yourself... www.wallstreet34.com
Boston.
Stay in CT
Obama is taking his 'Hope and Change' global.
GE has run out of gummamint paid for windmill orders that produce electricity in a market that has been over producing for years, but has been over-priced by gummamint backed oligopolies over the same period.
Big fat fucking gummament - this is the enemy.
Pledges??? We don't need no stinkin' pledges!
The EU needed desperate GE women for the refugees to grope without complaining.
Dont disturb! 'Draghinomics' at work.
Funny.....let us by your company....we wont cut any jobs......oops we lied...we are going to cut 6500.....sorry..thanks for the deal though...
Seems like Barry can't slow this recovery down...it's very "robust!"
",,,cut 6,500 jobs in Europe over the next two years, including 765 in France,,,,The spokesman added that GE was sticking to its pledge to create 1,000 net jobs in France in the next three years as part of its recent acquisition of Alstom's energy business."
Paging Mr. Orwell, There is a group of lieing theiving oligarcs in aisle 5 that needs to be removed. Mr. Orwell? are you there?
Start to fire 650 to hire after 1000 is something beyond my understanding.
But what I understand is that we have been FORCED to sell Alsthom (with orders for the next 30 years) to GE at a bargaining price, by the mean of a bribery (a so called investigation on corruption charges for a business that had nothing to do with USA).
Our (French) gov. have been despicable to let this French jewel and strategic entreprise go that easily in foreign hands.
Harsh diplomatic and economic retaliations should have been issued.
Its like in the US. They layoff 1000 people at middle class salaries, and hire 1200 with 40% cut of salaries. On top they get tax brakes from the government for creating "jobs".
Those poor Europeons, they just can't catch a break.
GE ... they bring good things to life! Like the Fukushima nuclear reactors placed at the very edge of the ocean, in the ring of fire, that have been poisoning us 24/7 now for almost 5yrs at this point.
Waiters and bartenders don't earn a lot of money, no consumption is also no growth and means deflation is coming.
what religion does the head of ge follow?? yellen we all know is a mormon but the head of ge..hmmmm
"what religion does the head of GE follow?"...
He follows the same religion that most people on earth follow...the one in which The Allmighty Dollar is god.
JMHO, the growth paradigm is a false paradigm that should be discarded.
On the one hand, we have elitists running companies with the mantra "growth at any cost". On the other hand we have the same elitists criticizing destruction of global resources.
I don't especially believe in one "ism" (capitalism, communism etc.) because the "isms" lock us into one or more additional paradigms ... which are most likely false as well. For example, after reading the Communist Manifesto, it became clear that it was a scam. Elitists had no intention of sharing power and wealth with the workers of the world. They only wanted a more effective way of exploiting them ... and leading people to believe that their suffering led to a better world for all was just a big con job.
Elitists are a serious plague on the world. However, they challenge us, somewhat successfully, to cast aside fear and ego and be better than them. Elitists are a good example of what not to be if we want to develop ourselves.
https://www.bostonglobe.com/business/2016/01/12/boston-said-submit-forma...
The city of Boston and the state have submitted their formal proposal to bring General Electric Co.’s world headquarters to Boston, and some participants in the process are hopeful about the region’s prospects, according to people with knowledge of the matter.
The industrial conglomerate continues to focus on locations on the South Boston waterfront, including a property owned by the Massachusetts Port Authority and another on Summer Street. Local officials are awaiting word from Fairfield, Conn.-based GE, which they think could come as soon as this week.
"Come to Boston.
Because we smell better than Bridgeport.
And we have the good chowdah."
I thought it was, "Bawston."
Where are you guys from?
In the face of a rising dollar, I'd think GE's European operations would be their strength. Does this testify to the deterioration in the global economy?
Ok Lie to the French to get Alstrom.
Lie about creating jobs in France.
Lie and get the French to join the boycott of Russia and lose lots of orders.
Lie, lie,lie.
GE We Bring Good Things to Life (sarc)
Immelt figures he can squeeze another 7-10 years out of Eurotards willing to buy windmills and pay 3X the cost for electricity before they figure it out.
Euro's, they're very tenacious when they get a bad idea.
These aren't job cuts - they're Negative Human Capital Adjustments. /s
Good rabbi friend in France tell me this. Job cuts white workers. Sub-Saharan non-whites from Africa then replace white jobs. Even add 1000 more jobs for more non-white invaders into Europe. Governments will subsidize wages of non-whites. Overall labor costs for corporation greatly reduced on backs of white workers. Heh heh. Our plan to dispossess white Europeans of home lands right on track. Europe is learning to embrace diversity. LOL! Oy vey!!
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Does anyone think to ask why, the 'real' why these people were laid off? You hear the mealy-mouthed, baffle-gab, but never the real reason.
Do you think the 'business' is really going to be smaller?
I doubt it.
With the rise of automation, 3D printing, VR/AVR and autonomous vehicles, on the back of AI, you will see more and more of these layoffs happening through out sectors, as jobs are taken out by these technologies.
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Three $150k robots replaced 60 welders: how Cox Industries keeps making mowers in Queensland
http://www.brw.com.au/p/business/private-business/three_robots_replaced_...
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Fear the future.
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