GE Healthcare cuts 31,000 employees as a whole, layoffs may continue in 2021

the impact of the outbreak

31,000 jobs overallGE recently released its 2020 annual report, according to the Securities and Exchange Commission's official website.By the end of 2020, GE and its merged branches will employ about 174,000 people, about 56,000 of whom will work in the United States, according to the annual report.Its power, renewable energy, aviation, healthcare and capital sectors employ approximately 34,000, 40,000, 40,000, 47,000 and 2,000 people, respectively. In addition, the company employs about 10,000 people.The decrease in employment by the end of 2020 (a decrease of 31,000, or about 15.1%) compared to 205,000 at the end of 2019 was mainly due to restructuring, including measures taken by GE's business to manage risk and actively mitigate the financial impact of the outbreak, as well as to reduce business costs and exit the business.By the end of 2019, GE and its merged branches employed about 205,000 people, about 70,000 of whom worked in the United States, according to the 2019 annual report of Cypress Blue Devices. Its power, renewable energy, aviation, health care and capital sectors employ approximately 38,000, 43,000, 52,000, 56,000 and 2,000 people, respectively.By contrast, electricity decreased by 4,000 (-10.5 per cent), renewable energy by 3,000 (-7.0 per cent), aviation by 12,000 (-23.1 per cent), healthcare by 9,000 (-16.1 per cent) and capital sector by 9,000 (-16.1 per cent).According to the annual report, GE's aviation business has taken a number of business actions to address the current adverse environment, including reducing its global workforce by about 25%.For the full year of 2020, the airline industry achieved more than $1 billion in operating cost reductions and $2 billion in cash retention actions, including more than 11,000 job cuts. Based on actions taken in 2020 and further initiatives in 2021, the aviation business is expected to achieve cost and cash savings by 2021.

2021, or continue to lay offAccording to GE's annual report, it has been carrying out a number of cost reduction and restructuring efforts that may adversely affect operations, employee retention, performance and reputation, and may not achieve the expected benefits.GE will continue to take restructuring actions, including layoffs, global plant consolidation and other cost-cutting initiatives. These actions have been an important part of its ongoing efforts to improve operational and financial performance, while other actions have been taken or accelerated to mitigate the adverse financial impact of the outbreak on the business.The number of interdependent and transformed business portfolios and internal actions taken also increase the risk of capacity constraints throughout the company's period of major restructuring and cost reduction.In addition, if GE fails to successfully manage restructuring and other transformational activities, expected operational improvements, efficiencies, and other benefits may be delayed or unable to be realized, and operations and business may be disrupted. Risks associated with these actions include unforeseen layoff delays, additional unexpected costs, adverse effects on employee morale, loss of key employees, or other retention issues.Prior to that, on January 27th, GE reported 2020 results, with total revenue of $79.62 billion for the full year 2020, down 16% from a year earlier, according to the Securities and Exchange Commission.By business section, the healthcare business reported revenue of $18 billion, down 10 percent from $1.99 billion in 2019, and profit of $3.06 billion, down 18 percent from $3.74 billion in 2019.The power business achieved revenue of $17.59 billion, down 6% YoY, and profit of $270 million, down 6% YoYThe airline business reported revenue of $22.04 billion, down 33 percent from a year earlier, and profit of $1.23 billion, down 82 percent from a year earlier.GE said in its report that its ventilator production capacity has tripled in support of the fight against the outbreak, and other techniques have been used to diagnose and treat new coronary pneumonia.From a product perspective, GE Healthcare will launch more than 40 new medical products in 2020, and from a regional perspective, GE Healthcare will see strong growth in Europe and China in 2020, with revenues of more than $2 billion in China, up 11% in the first quarter alone, and U.S. revenues of more than $6.5 billion, up 2% year-on-year, including U.S. government respirator orders.
(Cypress Blue)