Thread regarding General Electric Co. layoffs

Goodwill writedown

$23B Goodwill must have been backed by some cash flow assumptions. If GE power is taking a writedown fir 23B, they are likely losing $2B-$3B of cash flow. At 15% margins, that is about $10-$15B revenue miss in foreseeable future.

This means 40-50 percentage drop in revenues and bigger drop in profits and cash flows.

Since this site is about layoffs, that translates to 40-50 percent cuts in spend, unless shareholders agree to invest in a new growth area. Considering the track record in Digital and jury still out on 3D printing, there is not much love between shareholders and management.

To rank and file it means every second or third person will be out of GE payroll as soon as they can figure out how. More pain in high cost countries like US, France.

This will increase distrust between front lines and leadership due to history of cronyism. Expertise will leave. Defect rates go up. Customers find ways to squeeze GE - unless the new leader figures out how to retain the right people and fix operations. Multi year effort. Will be mother of all turnarounds, similar to IBM in 90s.

What an I missing?

by
| 2921 views | | 11 replies (last October 23, 2018) | Reply
Post ID: @OP+VKZt1em

11 replies (most recent on top)

It a write off!!

https://www.youtube.com/watch?v=upifaeK0B5U

by
| | Reply
Post ID: @2omw+VKZt1em

The write down is kind of the Rorschach test of this forum. The cause is whatever each person thinks was/is wrong with GE. No one here has actually read GE's explanation.

by
| | Reply
Post ID: @2peu+VKZt1em

I went to goodwill ones I didnt noe ge onded it they have shirts halve off on wensdays and I like there small apllyance stuff that explans why my toaster dosnt work

by
| | Reply
Post ID: @2yyf+VKZt1em

Thats simple. The about 20 billion have been the value of the whole power business, which meanwhile is estimated with 0 value.

by
| | Reply
Post ID: @1wuv+VKZt1em

Everyone seems to be talking about the $23B writedown - I haven't seen any articles explaining how the Goodwill was estimated to be worth $23B in the first place .. was this another example of imagination at work?

by
| | Reply
Post ID: @1qdp+VKZt1em

Is it that difficult to admit 23b write down not a good thing? Plan for the worst and do the best.

by
| | Reply
Post ID: @jeh+VKZt1em

This would be my plan, hey Larry just give me 2 million of your stock options. You are just a operative of peltz anyway and dont need the money

  1. Purge 2/3 of all SEB

  2. Remove all "ge" people leaders who are SEB that have 25 years of service and are 50 years old. If they where going to be knighted with eband status...it would happen by now

  3. Close Baden...middle east Africa offices and belfort...manage all out of Paris

  4. Close all alstom offices in Asia...manage out of China.

  5. Build units out of all 1 plant...

  6. 1 global service plant

  7. Merge services renewable and power into 1 business...keep healthcare...keep lightening and aviation.

8.,remove 2/3 of alstom employees

  1. Close all facilities that doesnt have 2k employees.

  2. Cancel all leadership programs...close croutinville

  3. If a e band doesn't have more then 30 direct reportees...out the door

This is the most important detail, ACTUAL GIVE PAY RAISES...PROMOTE THE RIGHT PEOPLE...NOT JUST A PRETTY HALF INTELLEGENT WOMEN...AND GIVE STOCK OPTIONS BACK TO ALL,EMPOYEES. YOU WANT CHANGE AND EXECUTION...THIS HAPPENS WITH EMPLOYEES THAT,WORK and GET REWARDED.

by
| | Reply
Post ID: @vwq+VKZt1em

Ah yes... stay calm... keep drinking the Kool-Aid...

by
| | Reply
Post ID: @xjx+VKZt1em

Are we back to kindergarten now? Calm down.

by
| | Reply
Post ID: @avn+VKZt1em

Break GE into pieces.

Kill all GE corporate dead weights and cesspools: GGO, GRC, CAS, Cretinville, etc

Do it now. Or else you will be history, very soon.

by
| | Reply
Post ID: @dlm+VKZt1em

The $23B write down was due to GE's assessment that the current value of GEP is $23B less given the fact that renewables are taking over. Sorry but $23B of of company value for spare parts is NEVER coming to GE. It never WAS coming to GE. GE thought it was but it wasn't.

Do you think a $23B write down for lost future business was optimistic or pessimistic? Do you think renewables will take over faster or slower than GE is willing to estimate?

by
| | Reply
Post ID: @ikc+VKZt1em

Post a reply

: