News | December 11, 2008

GE to Cut Costs in 2009

December 11, 2008 - In an interview at a conference at Columbia University in New York last Friday, General Electric Co.’s CEO Jeff Immelt said the company is cutting costs and said costs will be lower in 2009 than in 2008.

According to a report by The Wall Street Journal on its Web site, Immelt said at the company's shareholders meeting in April that GE will increase its planned cost-cutting by 50 percent, from $2 billion to $3 billion.

The cuts will be made across GE businesses, including jet engines, locomotives, water treatment plants and other large manufactured goods. It also runs a large financial business that provides consumer and business financing. GE has already announced plans to trim its finance unit. Immelt also said employment will be lower, but declined to give numbers or percentages.

Immelt said he has not issued hiring freezes or travel restrictions but has identified such measures for potential cost-saving tools for business heads, The Wall Street Journal reported.

Immelt said Friday that GE will continue to be active in areas such as loans to restaurant franchisees and companies under bankruptcy protection. He said new loans in those areas would decline this quarter, The Wall Street Journal said.

Source: International Business Times (www.ibtimes.com)

For more information: www.ge.com

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