273 should read thin! Couple more hundred out the door

Power and renewable energy
I'm discussing these segments together because they are both businesses in turnaround mode. Simply put, CEO Larry Culp is trying to improve margins at both businesses and get them back to generating FCF in a couple of years.

The chart below shows one of the reasons the market got excited about GE's third-quarter earnings report. Both segments delivered a positive earnings margin in the quarter.

The key difference between the two segments is that power is a relatively slow-growth business because renewable energy is increasingly being used to generate electricity rather than the gas turbines that GE manufactures. That's good news for GE Renewable Energy, but not such good news for GE Power.

Subsequently, the key focus at GE Power (and specifically the gas power business) is to reduce costs. Culp plans to reduce gas power fixed costs to $2.5 billion by 2021 from $3.46 billion in 2018. It's a key number to watch in GE's fight to improve its margin.

Cited from an article posted 6 hours ago

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GE Gas Power is facing a more dire outlook than the rest of Power, as seen in the Q4 earnings report. They separated it from the rest of the Power business for good reason, as gas turbines are going away soon. Greenville is going to be hit the hardest.

GE Power is in deep trouble because of 20 years of gross mismanagement by getting out of manufacturing and sourcing 90% of parts, and installing Six Sigma type managers with little or no product or service experience. It often costs more to ship parts around the world, than to make them and move to next building for turbine assembly. Since this started 20 years ago under Nardelli, GE Power costs and quality / cost of quality has dragged down the entire company where Power can no longer make money. Power used to make around $1.2 Billion on $7 Billion in sales but are now just breaking even after years of billion dollar losses.
Expect further layoffs in a futile attempt to fix this bottoms up cost problem from turning into an low quality outsourcing operation with now 0ut of touch, disconnected high cost bloated beaurocracies like Atlanta locations far away from once cost effective Schenectady and Greenville product centers .

There cutting costs in REN too. No one is safe.

Layoffs and plant closings get ready for another CA agreement and to give back more

Yes! Cut costs via lay-offs

Thread regarding General Electric Co. layoffs

273 should read thin! Couple more hundred out the door

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