NEW YORK: General Electric Co’s Chief Executive John Flannery plans to disclose a road map for the company 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.
GE was reported to be laying off sales staff and other employees in its software division, according to sources, last week. Flannery vowed last month to shed more than $20 billion worth of assets and hold executives accountable for failing to deliver profits after what he called “horrible” results in the third quarter.
GE badly missed Wall Street expectations and slashed its full-year forecast last month. Investors are pushing for big change after more than a decade of frustration at poor returns from the 125-year-old maker of power plants, jet engines, medical devices and other industrial equipment.
— Reuters
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