GE to focus on three key units, exit most other operations

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General Electric Co’s Chief Executive John Flannery plans to disclose a road map for the company on Monday that will focus on three of its biggest business lines – aviation, power and healthcare, 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.

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.

General Electric Co’s Chief Executive John Flannery /Reuters Photo

GE could not be reached for comment outside regular business hours.

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.

GE declined to comment on specific staff reductions, but highlighted its plan to cut 3 billion US dollars in costs by the end of 2018. “Those actions include but are not limited to, employee reductions which have been well underway for many months,” spokeswoman Jennifer Erickson said.

China handed visiting US President Donald Trump a business deal package worth an eye-popping 253 billion US dollar on last Thursday. /Chinanews.com Photo

The company had signed three aviation and engine deals with Chinese partners worth a total of 3.5 billion US dollars on the sidelines of a state visit to Beijing by US President Donald Trump last week, who has been looking to stir up US-China trade.

The deals included an engine and repair deal for GEnx-1B engines from Juneyao Airlines Co Ltd worth 1.4 billion US dollars at list prices, and another 1.1-billion-US-dollar order for 80 Leap-1B engines to power 40 Boeing 737 MAX Aircraft from ICBC Leasing, the leasing arm of state bank Industrial and Commercial Bank of China Ltd, according to GE's report.

GE also signed a framework agreement with China Datang Group to supply it with gas turbines and other components for Chinese domestic projects valued at about 1 billion US dollars.