GE to focus on three key units — aviation, power and health care — and exit most other operations

General Electric’s Chief Executive John Flannery plans to disclose a roadmap for the company on Monday that will focus on three of its biggest business lines — aviation, power and health care, the Wall Street Journal reported, citing a person familiar with the matter.

The report also says the plan stops short of a breakup or more radical restructuring of the 125-year-old company, but Flannery will look to exit most of its other operations.

GE announced Monday it plans to slash its quarterly dividend by 50 percent to 12 cents a share from 24 cents a share.

The Boston-based company also plans to shed its majority stake in Baker Hughes, which became a separate public company in July after merging with GE’s oil and gas operations, the report said.

“We don’t have a comment until the presentation is released at 8:30 a.m. ET,” GE spokeswoman Deirdre Latour said in an email when contacted by Reuters.

GE was reported to be laying off sales staff and other employees in its software division, according to sources, last week, ahead of Flannery’s expected announcement on Monday of a plan to slash costs and jettison units in an effort to improve the company’s profits.

Let’s block ads! (Why?)

Health Care