New York Nov 14 (IANS) General Electric has announced it embarked on an ambitious restructuring plan which includes a 50 per cent dividend cut a reduction in the number of board seats and a narrower focus on aviation energy and health care.
The initiative was presented by John Flannery who became GE s chief executive on August 1 replacing Jeff Immelt after 16 years at the helm of the industrial conglomerate Efe news reported on Monday.
"This is the opportunity of a lifetime to reinvent an iconic company " Flannery told investors and Wall Street analysts at a meeting in New York.
Founded 125 years ago the Boston-based company employs roughly 300 000 people worldwide.
GE plans to sell off a unit that makes train engines and another unit Current that is in the lighting business and will consider getting rid of its controlling stake in oil-and-gas company Baker Hughes Flannery said.
The board of directors is to be reduced from 18 members to 12 the CEO said.
Another aspect of the overhaul is a 50 per cent cut in the dividend paid to stockholders from 96 cents a share to 48 cents which Flannery said would save GE more than $4 billion a year.
"We ve been paying a dividend in excess of our free cash flow for a number of years now. We just don t think it makes sense for our company going forward " the CEO said.
Though reorganisation and cost-costing will entail job losses GE is yet to say how many positions stand to be eliminated.
--IANS
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