Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

GE warns of more job cuts at aviation business amid sluggish recovery

11/24/2020 | 10:38am EST
FILE PHOTO: The logo of U.S. conglomerate General Electric is seen on the company building in Belfort

(Reuters) - General Electric Co on Tuesday warned of more job cuts at its aviation unit, citing a lengthy recovery for the airline industry from the impact of the coronavirus crisis.

The job cuts are the latest setback for the aviation sector, with the industry's woes expected to last into 2021 even as U.S. regulators ended a 20-month grounding of Boeing Co's MAX 737 jets and COVID-19 vaccine developers reported positive data.

"As we continue to closely monitor market conditions, we are examining a range of options to appropriately scale our business to match the realities of the global airline industry recovery from the severe impacts of COVID-19," the company said in a statement.

In an internal video message delivered on Friday, GE's aviation unit head John Slattery said additional job cuts would be a component of those options, a company official said.

The company's shares were up about 5% at $10.58.

The Boston-based conglomerate in May announced plans to cut the global workforce at its aviation unit by as much as 25% in 2020, or up to 13,000 jobs, citing prolonged aircraft reduction schedules caused by the pandemic.

Through the quarter to end-September, GE had reduced about 20% of its aviation workforce and realized close to $1 billion in cost savings.

Last month, the company said it was "actively monitoring" the pace of demand recovery to ensure the business was "appropriately sized" for the future.

Revenue at GE's aviation unit, its largest, fell 39% in the third quarter while aviation orders more than halved during the period, with a 60% decline in both commercial engines and commercial services.

This has compounded the troubles at GE's aviation unit, which makes engines for Boeing and Airbus SE and had already been reeling from the grounding of Boeing's 737 MAX planes.

The Wall Street Journal first reported the development.

(Reporting by Rachit Vats in Bengaluru and Rajesh Kumar Singh in Chicago; Editing by Arun Koyyur, Aditya Soni and Bernadette Baum)

By Rachit Vats and Rajesh Kumar Singh


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
AIRBUS SE -0.59% 88.83 Real-time Quote.-1.06%
GENERAL ELECTRIC COMPANY 0.36% 11.11 Delayed Quote.2.87%
Latest news "Economy & Forex"
03:59aMEDIA-BlackRock among 29 fund managers fail 'fee disclosure' test - FT
RE
03:44aPCBS PALESTINIAN CENTRAL BUREAU OF STATISTICS : The Preliminary Results of the Palestinian Registered External Trade In Goods of November ,11/2020
PU
03:10aCENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : China's Hubei targets 10% GDP growth after virus-ravaged year
PU
02:38aLESSONS TO BE LEARNED : The Importance of Better Education for Better Democracies
PU
02:34aTaiwan says asking chip firms to help ease auto chip shortage
RE
02:28aCENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : Shanghai targets 6% GDP growth in 2021
PU
01:40aBangladesh to buy Myanmar rice, putting aside Rohingya crisis
RE
01:02aChina's strong economic performance good sign for global recovery, says scholar
PU
01:02aCENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : Economic powerhouse Guangdong sets 6% target for GDP growth
PU
01/23New Zealand probes first 'probable' community COVID-19 case in months
RE
Latest news "Economy & Forex"