General Electric Co. (GE) said its GE Aviation unit is planning to cut 10% of its U.S. workforce, as the COVID-19 pandemic has led to a "rapid contraction" of air travel. GE's stock fell 0.7% in morning trading. GE Aviation said the temporary lack of work will impact about 50% of its U.S. maintenance, repair and overhaul employees for 90 days. That is in addition to previous moves already taken, which includes a hiring freeze, the cancellation of merit increases to salaries, a "dramatic" reduction in non-essential spending and a "significant" decrease in its contingent workforce. And starting April 1, GE Aviation Chief Executive David Joyce will forgo half of his salary. GE expects the actions to save about $500 million to $1 billion in 2020. GE's stock has tumbled 47% over the past month, while the Dow Jones Industrial Average has shed 34.5%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 23, 2020 09:34 ET (13:34 GMT)
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