By Thomas Gryta
General Electric Co. warned employees that more job cuts are coming to the conglomerate's jet-engine business because of the pandemic's impact on commercial air travel even with the promise of a vaccine on the horizon.
In an internal video message delivered a week before the Thanksgiving holiday, GE Aviation's new boss John Slattery said business conditions are difficult and the unit would need to shrink over the next 18 months, according to people familiar with the matter.
More jobs would be lost, he said, but the cuts would be more focused than two rounds of layoffs earlier this year that ultimately eliminated 25% of the division's 52,000 global employees. Mr. Slattery didn't disclose the number of jobs that would be cut in the video, which was reviewed by The Wall Street Journal.
"The business revenue and profit projections not only for this year but next year and the year after are fundamentally lower than what we originally budgeted or expected," Mr. Slattery said from the division's Ohio headquarters. A former executive at Brazilian plane maker Embraer SA, Mr. Slattery took over the GE division in September.
"Overall, particularly in our commercial sector, we'll be a smaller business and our cost structure simply must align," he told workers, noting that more details will come early next year.
A GE spokeswoman had no immediate comment.
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(END) Dow Jones Newswires